Your home of record will tax the wages it can legally. I am not sure what tax free zone means to you, 2 options come to mind: Combat pay is only taxed by Medicare and Social Security, not the IRS or state.. If you mean you are stationed in a state that does not tax, it has no affect on you, as it is not your home of record.

Question

I am currently an active duty military member, and I’m stationed in a tax free pay zone. This has been for more than half the tax year. How will this affect my taxes?

Forum|Forum|6 years ago
January 30, 2020
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AmyC

Your home of record will tax the wages it can legally.

I am not sure what tax free zone means to you, 2 options come to mind:

Combat pay is only taxed by Medicare and Social Security, not the IRS or state..
If you mean you are stationed in a state that does not tax, it has no affect on you, as it is not your home of record.

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