At Your Service
For and about Hawaii's military

By Gregg K. Kakesako

Sunday, December 30, 2001

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See also: For Your Benefit

U.S. troops in Afghanistan
to get tax benefits
for combat service

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Three Army recruiters stationed in Hawaii have been awarded the Army Recruiting Command's second highest reward, the recruiter ring.

They are: Sgts. 1st Class Rebecca Carabusco and Melvin Manglona, both stationed at the recruiting station in Kaneohe; and Sgt. 1st Class James Freedman, who is the commander of the recruiting station on Kapiolani Boulevard.

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Under an executive order signed by President Bush Dec. 14., U.S. troops serving in Afghanistan as part of Operation Enduring Freedom will pay little or no federal tax this year. The order, effective Sept. 19, establishes Afghanistan and the airspace above it as a combat zone. It makes service members involved in combat operations in or above Afghanistan eligible for certain tax benefits.

These combat zone tax benefits are:

>> For enlisted members and warrant officers, all compensation for active service earned in a combat zone is tax-free. This includes regular basic pay. Special pay, such as re-enlistment bonuses, is also tax-free if the service member re-enlists in a combat zone.

>> For commissioned officers, the monthly tax exclusion is capped at the highest enlisted pay, plus any hostile fire or imminent danger pay received. Therefore, for 2001, the most an officer can earn tax-free each month is $5,043 ($4,893, the highest monthly enlisted pay, plus $150 hostile fire or imminent danger pay).

The tax exclusion applies only to compensation for active service in the armed forces. Civilians are not eligible.

Troops serving in a combat zone are also allowed extra time to file tax returns and to attend to other tax matters.

The tax deadline extension also applies to certain civilians serving in a combat zone, such as Red Cross workers, accredited correspondents, and other civilians acting under the direction of the U.S. armed forces in support of those forces.

Most states follow the federal lead, but service members should check with unit tax or legal advisers to be sure. Presidents have previously designated combat zones during the Korean and Vietnam Wars, the Persian Gulf War and military operations in Kosovo.

Moving Up

Pearl Harbor: Cmdr. Duane Ashton to command the attack submarine USS Columbia, relieving Cmdr. William Drake.

Schofield Barracks: Col. John D. Gardner, assistant 25th Infantry division commander (Support), to brigadier general.

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Gregg K. Kakesako can be reached by phone at 294-4075
or by e-mail at gkakesako@starbulletin.com.