Not all pay received while serving in combat zone is tax free.(ARMED FORCES)

From: The Kiplinger Tax Letter | Date: January 11, 2008 | Copyright information

Not all pay received while serving in a combat zone is tax free.

The pay must accrue during combat zone service, the Service says in a private ruling. Therefore, a soldier who reenlists while serving outside of a combat zone can't exclude the reenlistment bonus if it's paid whi...