taxmap/pubs/p3-000.htm#en_us_publink1000176132taxmap/pubs/p3-000.htm#en_us_publink1000293209Roth Thrift Savings Plan (TSP) balance.
(p1)You may be able to contribute to a designated Roth account through the TSP known as the Roth TSP. Roth TSP contributions are after-tax contributions, subject to the same contribution limits as the traditional TSP. Qualified distributions from a Roth TSP are not included in your income. For more details, see
Thrift Savings Accounts in Part II in Publication
721, Tax Guide to U.S. Civil Service Retirement Benefits.
taxmap/pubs/p3-000.htm#en_us_publink1000176137Earned income credit.
(p1)The maximum income you can earn and still claim the earned income credit has increased. You may be able to take the earned income credit if you earned less than $45,060 ($50,270 for married filing jointly) if you have three or more qualifying children; $41,952 ($47,162 for married filing jointly) if you have two qualifying children; $36,920 ($42,130 for married filing jointly) if you have one qualifying child; and $13,980 ($19,190 for married filing jointly) if you do not have any qualifying children. See
Earned Income Credit, later, under
Credits.
taxmap/pubs/p3-000.htm#en_us_publink1000176140Standard mileage rate.
(p1)The standard mileage rate for the cost of operating your car for business use in 2012 is 55.5 cents a mile. The standard mileage rate for operating your car during 2012 to get medical care or to move is 23 cents a mile. The standard mileage rate for charitable use of your vehicle is 14 cents a
mile.
taxmap/pubs/p3-000.htm#en_us_publink1000295174First-time homebuyer credit.
(p2)The first-time homebuyer credit has expired. Certain taxpayers who claimed this credit must repay it. See
First-Time Homebuyer Credit, later, under
Credits.
taxmap/pubs/p3-000.htm#en_us_publink1000176145If you change your mailing address, be sure to notify the Internal Revenue Service (IRS) using Form 8822, Change of Address. Mail it to the Internal Revenue Service Center for your old address. (Addresses for the Service Centers are on the back of the form.) Use Form 8822-B, Change of Address—Business, if you are changing a business
address.
taxmap/pubs/p3-000.htm#en_us_publink1000176146Third party designee.
(p2)You can check the "Yes" box in the
Third Party Designee
area of your return to authorize the IRS to discuss your return with your preparer, a friend, a family member, or any other person you choose. This allows the IRS to call the person you identified as your designee to answer any questions that may arise during the processing of your tax return. It also allows your designee to perform certain actions. See your income tax instructions for details.
taxmap/pubs/p3-000.htm#en_us_publink1000266087For the latest information about developments related to Publication 3, such as legislation enacted after it was published, go to
www.irs.gov/pub3.
taxmap/pubs/p3-000.htm#en_us_publink1000176147Photographs of missing children.
(p2)The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a
child.
This publication covers the special tax situations of active members of the U.S. Armed Forces. It does not cover military pensions or veterans' benefits or give the basic tax rules that apply to all taxpayers. For information on military pensions or veterans' benefits, see Publication
525, Taxable and Nontaxable Income. If you need the basic tax rules or information on another subject not covered here, you can check our other free publications. See Publication
910, IRS Guide to Free Tax Services, for a list and descriptions of the different tax
publications.
For federal tax purposes, the U.S. Armed Forces includes commissioned officers, warrant officers, and enlisted personnel in all regular and reserve units under control of the Secretaries of the Defense, Army, Navy, and Air Force. The U.S. Armed Forces also includes the Coast Guard. It does not include the U.S. Merchant Marine or the American Red Cross.
Members serving in an area designated or treated as a
combat zone
are granted special tax benefits. In the event an area ceases to be a combat
zone, the IRS will do its best to notify you. Many of the relief provisions will
end at that time.
taxmap/pubs/p3-000.htm#en_us_publink1000290868We welcome your comments about this publication and your suggestions for future
editions.
You can write to us at the following address:
Internal Revenue Service
Individual and Specialty Forms and Publications Branch
SE:W:CAR:MP:T:I
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224
We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your
correspondence.
You can email us at
taxforms@irs.gov. Please put "Publications Comment" on the subject line. You can also send us comments from
www.irs.gov/formspubs/. Select "Comment on Tax Forms and Publications" under "More
Information."
Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax
products.
taxmap/pubs/p3-000.htm#en_us_publink1000290869Visit
www.irs.gov/formspubs/
to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or
write to the address below and receive a response within 10 days after your
request is received.
Internal Revenue Service
1201 N. Mitsubishi Motorway
Bloomington, IL 61705-6613 taxmap/pubs/p3-000.htm#en_us_publink1000290870If you have a tax question, check the information available on IRS.gov or call 1-800-829-1040. We cannot answer tax questions sent to either of the above
addresses.
taxmap/pubs/p3-000.htm#TXMP783f491cUseful items
You may want to see:
Publication 54 Tax Guide for U.S. Citizens and Resident Aliens Abroad
463 Travel, Entertainment, Gift, and Car Expenses
501 Exemptions, Standard Deduction, and Filing Information
503 Child and Dependent Care Expenses 505 Tax Withholding and Estimated Tax 516 U.S. Government Civilian Employees Stationed Abroad
519 U.S. Tax Guide for Aliens
521 Moving Expenses
523 Selling Your Home
525 Taxable and Nontaxable Income 527 Residential Rental Property
529 Miscellaneous Deductions
559 Survivors, Executors, and Administrators
590 Individual Retirement Arrangements (IRAs) 596 Earned Income Credit (EIC) 970 Tax Benefits for Education
3920 Tax Relief for Victims of Terrorist Attacks Form (and Instructions) 1040X:
Amended U.S. Individual Income Tax Return
1310:
Statement of Person Claiming Refund Due a Deceased Taxpayer
2848:
Power of Attorney and Declaration of Representative
3903:
Moving Expenses 4868:
Application for Automatic Extension of Time To File U.S. Individual Income Tax Return
8822:
Change of Address
8822-B:
Change of Address—Business 9465:
Installment Agreement Request
See
How To Get Tax Help
near the end of this publication, for information about getting IRS publications
and forms.
taxmap/pubs/p3-000.htm#en_us_publink1000176152Members of the Armed Forces receive many different types of pay and allowances. Some are included in gross income while others are excluded from gross income. Included items
(
Table 1) are subject to tax and must be reported on your tax return. Excluded items
(
Table 2) are not subject to tax, but may have to be shown on your tax
return.
taxmap/pubs/p3-000.htm#en_us_publink1000176155Table 1. Included Items
These items are included in gross income, unless the pay is for service in a combat zone.
Basic pay | • Active duty | | Bonus pay | • Career status |
| • Attendance at a designated service school | | | • Enlistment
• Officer
|
| • Back wages | | | • Overseas extension |
| • CONUS COLA | | | • Reenlistment
|
| • Drills
| | | |
| • Reserve training | | | |
| • Training duty
| | Other pay | • Accrued leave |
| | | | • High deployment per diem |
Special
| • Aviation career incentives
| | | • Personal money allowances paid to
|
pay | • Career sea | | | high-ranking officers
|
| • Diving duty
| | | • Student loan repayment from programs
|
| • Foreign duty (outside the 48 contiguous | | | such as the Department of Defense
|
| states and the District of Columbia)
| | | Educational Loan Repayment Program |
| • Foreign language proficiency | | | when year's service (requirement) is not |
| • Hardship duty | | | attributable to a combat zone
|
| • Hostile fire or imminent danger
| | | |
| • Medical and dental officers
| | Incentive pay | • Submarine |
| • Nuclear-qualified officers
| | | • Flight |
| • Optometry
| | | • Hazardous duty |
| • Pharmacy | | | • High altitude/Low Opening (HALO) |
| • Special compensation for assistance with activities of daily living (SCAADL)
| | | |
| • Special duty assignment pay
| | | |
| • Veterinarian | | | |
| • Voluntary Separation Incentive | | | |
taxmap/pubs/p3-000.htm#en_us_publink1000246809You can still deduct mortgage interest and real estate taxes on your home if you pay these expenses with your
BAH.
taxmap/pubs/p3-000.htm#en_us_publink1000278960Table 2. Excluded Items
The exclusion for certain items applies whether the item is furnished in kind or is a reimbursement or allowance. There is no exclusion for the personal use of a government-provided vehicle.
Combat
zone pay
| • Compensation for active service while in a combat
zone Note: Limited amount for officers
| | | • Housing and cost-of-living allowances abroad paid by the U.S. Government or by a foreign
government |
| | | | • OHA (Overseas Housing Allowance)
|
|
| | | |
| | | | |
Other pay | • Defense counseling
| | | |
| • Disability, including payments received for injuries incurred as a direct result of a terrorist or military
action | | | |
| • Group-term life insurance
| | Moving
| • Dislocation
|
| • Professional education
| | allowances | • Military base realignment and |
| • ROTC educational and subsistence | | | closure benefit
|
| allowances
| | | (the exclusion is limited as |
| • State bonus pay for service in a
| | | described above) |
| combat zone | | | • Move-in housing
|
| • Survivor and retirement protection
| | | • Moving household and |
| plan premiums | | | personal items |
| • Uniform allowances
| | | • Moving trailers or mobile homes
|
| • Uniforms furnished to enlisted
| | | • Storage
|
| personnel
| | | • Temporary lodging and
|
| | | | temporary lodging expenses
|
| | | | |
| | | Travel
| • Annual round trip for dependent
|
Death
| • Burial services
| | allowances | students
|
allowances | • Death gratuity payments to | | | • Leave between consecutive |
| eligible survivors
| | | overseas tours
|
| • Travel of dependents to burial site
| | | • Reassignment in a dependent |
| | | | restricted status |
Family
| • Certain educational expenses for
| | | • Transportation for you or your |
allowances | dependents
| | | dependents during ship overhaul |
| • Emergencies
| | | or inactivation |
| • Evacuation to a place of safety | | | • Per diem |
| • Separation
| | | |
| | | In-kind military
| • Dependent-care assistance program
|
Living | • BAH (Basic Allowance for Housing) | | benefits | • Legal assistance
|
allowances | • BAS (Basic Allowance for Subsistence) | | | • Medical/dental care
|
| | | | • Commissary/exchange discounts |
| | | | • Space-available travel on government aircraft |
| | | | |
taxmap/pubs/p3-000.htm#en_us_publink1000176157Any death gratuity paid to a survivor of a member of the Armed Forces is excluded from gross
income.
taxmap/pubs/p3-000.htm#en_us_publink1000236103Differential wage payments are any payments made by an employer to an individual for a period during which the individual is performing service in the uniformed services while on active duty for a period of more than 30 days and that represent all or a portion of the wages the individual would have received from the employer if the individual was performing services for the employer. These amounts are taxable and cannot be excluded as combat
pay.
taxmap/pubs/p3-000.htm#en_us_publink1000176158Payments made under the Homeowners Assistance Program (HAP) generally are excluded from income. However, the excludable amount cannot be more than the maximum amount described in subsection (c) of 42 USC 3374 as in effect on November 6, 2009. Any part of the payment that is more than this limit is included in gross income. For more information about the HAP, see
http://hap.usace.army.mil/Overview.html.
taxmap/pubs/p3-000.htm#en_us_publink1000176162A QRD is a distribution to an individual of all or part of the individual's balance in a cafeteria plan or health flexible spending arrangement
if:
- The individual was a reservist who was ordered or called to active duty for more than 179 days or for an indefinite period,
and
- The distribution is made no sooner than the date the reservist was ordered or called to active duty and no later than the last day reimbursements could otherwise be made under the arrangement for the plan year which includes the date of the order or the call to
duty.
A QRD is included in gross income and is subject to employment taxes. The employer must include the QRD (reduced by after-tax contributions to the health flexible spending arrangement) as wages on Form W-2, Wage and Tax
Statement.
taxmap/pubs/p3-000.htm#en_us_publink1000259430If you participate in the Uniformed Services TSP and receive a distribution from your account, the distribution is generally included in your taxable
income.
If your contributions included tax-exempt combat zone pay, the part of the distribution attributable to those contributions is tax exempt. However, the earnings on the tax-exempt portion of the distribution are taxable. The TSP will provide a statement showing the taxable and non-taxable portions of the
distribution.
taxmap/pubs/p3-000.htm#en_us_publink1000176159Bonus payments made by a state (or a political subdivision thereof) to a member or former member of the uniformed services of the United States or to a dependent of such member are considered combat pay (and therefore may not be taxable) if the payments are made only because of the member's service in a combat zone. See
Combat Zone, later, for a list of designated combat zones.
taxmap/pubs/p3-000.htm#en_us_publink1000176163If you are a U.S. citizen with income from sources outside the United States (foreign income), you must report all of that income (except for amounts that U.S. law allows you to exclude) on your tax return. This is true whether you reside inside or outside the United States and whether or not you receive a Form W-2 or a Form 1099. This applies to earned income (such as wages and tips) as well as unearned income (such as interest, dividends, capital gains, pensions, rents, and royalties).
Certain taxpayers can exclude income earned in foreign countries. For 2012, this exclusion amount can be as much as $95,100. However, the foreign earned income exclusion does not apply to the wages and salaries of military and civilian employees of the U.S. Government. Employees of the U.S. Government include those who work at United States Armed Forces exchanges, commissioned and noncommissioned officers' messes, Armed Forces motion picture services, and similar personnel. Other foreign income earned by military personnel or their spouses may be eligible for the foreign earned income exclusion. For more information on the exclusion, see Publication
54.
Residents of American Samoa may be able to exclude income from American Samoa. This possession exclusion does not apply to wages and salaries of military and civilian employees of the U.S. Government. If you need information on the possession exclusion, see Publication
570, Tax Guide for Individuals With Income From U.S. Possessions.
taxmap/pubs/p3-000.htm#en_us_publink1000264107If you are the civilian spouse of an active duty U.S. military servicemember, you can choose to keep your prior residence or domicile for tax purposes when you accompany the servicemember spouse, who is relocating under military orders to a new duty station in one of the 50 states, the District of Columbia, or a U.S. possession. See Publication
570 for more information.
taxmap/pubs/p3-000.htm#en_us_publink1000176166The pay you earn as a member of the Armed Forces may be subject to community property laws depending on your marital status, your domicile, and the nature of the payment. The community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and
Wisconsin.
taxmap/pubs/p3-000.htm#en_us_publink1000176167Community property rules apply to married persons whose domicile during the tax year was in a community property state. The rules may affect your tax liability if you file separate returns or are divorced during the
year.
taxmap/pubs/p3-000.htm#en_us_publink1000176168Your domicile is the permanent legal home you intend to use for an indefinite or unlimited period, and to which, when absent, you intend to return. It is not always where you presently
live.
taxmap/pubs/p3-000.htm#en_us_publink1000176169Active duty military pay is subject to community property laws. Armed Forces retired or retainer pay may be subject to community property laws.
For more information on community property laws, see Publication
555, Community Property.
taxmap/pubs/p3-000.htm#en_us_publink1000246811Form W-2 shows your total pay and other compensation and the income tax, social security tax, and Medicare tax that was withheld during the
year.
Form W-2 also shows other amounts that you may find important in box 12. The amounts shown in box 12 are generally preceded by a code. A list of codes used in box 12 is shown,
next.
Form W-2 Reference Guide for Box 12 Codes
A | Uncollected social security or RRTA
| J | Nontaxable sick pay | T | Adoption benefits |
| tax on tips | | | | |
| | K | 20% excise tax on excess golden
| V | Income from exercise of
|
B | Uncollected Medicare tax on tips | | parachute payments | | nonstatutory stock option(s) |
| | | | | |
C | Taxable cost of group-term life
| L | Substantiated employee business
| W | Employer contributions (including
|
| insurance over $50,000 | | expense reimbursements
| | employee contributions through a
|
| | | | | cafeteria plan) to an employee's
|
D | Elective deferrals under a section
| M | Uncollected social security or RRTA | | health savings account (HSA) |
| 401(k) cash or deferred arrangement
| | tax on taxable cost of group-term life | | |
| plan (including a SIMPLE 401(k) | | insurance over $50,000 (former
| Y | Deferrals under a section 409A
|
| arrangement) | | employees only) | | nonqualified deferred
|
| | | | | compensation plan |
E | Elective deferrals under a section
| N | Uncollected Medicare tax on taxable | | |
| 403(b) salary reduction agreement | | cost of group-term life insurance
| Z | Income under section 409A on a
|
| | | over $50,000 (former employees only)
| | nonqualified deferred
|
F | Elective deferrals under a section
| | | | compensation plan |
| 408(k)(6) salary reduction SEP | P | Excludable moving expense
| | |
| | | reimbursements paid directly to
| AA | Designated Roth contributions
|
G | Elective deferrals and employer
| | employee | | under a section 401(k) plan |
| contributions (including nonelective
| | | | |
| deferrals) to a section 457(b)
| Q | Nontaxable combat pay | BB | Designated Roth contributions
|
| deferred compensation plan | | | | under a section 403(b) plan |
| | R | Employer contributions to an Archer
| | |
H | Elective deferrals to a section
| | MSA | DD | Cost of employer-sponsored
|
| 501(c)(18)(D) tax-exempt
| | | | health coverage |
| organization plan | S | Employee salary reduction contributions under a section 408(p)
SIMPLE | EE
| Designated Roth contributions under a governmental section 457(b) plan
|
Note. For more information on these codes, see your Form(s) W-2.
|