MILITARY PAY AND ALLOWANCES (FSM)

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The amount by which military salary is reduced to fund the GI Bill as amended by P.L. 99-576.

Treatment: Excluded Income

Income received by qualifying military members and their family under the Family Subsistence Supplemental Allowance (FSSA).

Treatment: Unearned Income

Income received by a military member who is currently absent from the household.

Treatment: Only the amount that is actually made available to the household is counted as Unearned Income.

Combat Pay Exclusion: Any increase to the active duty military member’s income that he/she receives as a result of service in direct support of a combat zone is excluded.  If the individual is in the Guard/Reserve, all income while serving in direct support of a combat zone is excluded.

Example 1:  A household receives $100 in military pay per month, regardless of whether the active duty military member is included in or absent from the household.  Then, the military member performs service in direct support of a combat zone and the household receives $1,000 in military pay per month.  The countable income is still $100, but the additional $900 is excluded.

Example 2:  A household receives $100 in military pay per month, regardless of whether the Guard/Reserve member is included in or absent from the household.  Then, the military member performs service in direct support of a combat zone and the household receives $1,000 in military pay per month.  All income is excluded.

For households that receive income from a military member who receives combat pay, treat the income up to the amount the military member receives in combat pay as combat pay. Any income a household receives from a military member that is greater than the amount the military member receives in combat pay should be counted as unearned income.

Example 3: A household receives $500 per month from a military member. The household verifies that the military member receives $250 per month in combat pay. Exclude $250 of the income the household receives as combat pay and treat the remaining $250 as unearned income.

Example 4: A household receives $500 per month from a military member. The household verifies that the military member receives $1,000 per month in combat pay. Exclude $500 of income as combat pay.

The amount of income that will be excluded as combat pay on an active duty military member’s pay stub will be identifiable by comparing the pay stub reflecting pay immediately prior to service in direct support of a combat zone to the pay stub while serving in direct support of a combat zone.

Self-attestation by a household member that a military member is deployed to or performing service in direct support of a combat zone shall be sufficient for verification purposes regarding such service.  However, the amount of combat pay must be verified.  A military member’s pay may be verified using their Leave and Earnings Statement (LES).  Compare the military member’s LES prior to deployment with their LES after deployment to determine the amount that would be excluded as “Combat Pay.”

References:  7 USC 2014(d)(19); 7 CFR 273.9(c)(20)