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Tax Breaks for Men and Women in Uniform
by Kevin McCormally

One thing our men and women in Iraq and Afghanistan don't have to worry about is the April 15 tax deadline. Their deadline is at least six months after they leave the combat zone. For married service people, the extension applies to husbands and wives back home, too.

For enlisted men and women, 100% of the pay received while serving in a combat zone and while hospitalized for injuries is tax free. For officers, there's a limit on the government's generosity. Still, up to about $6,000 a month escapes the IRS's grasp.

Thanks to a change last year, soldiers and sailors don't have to worry that time away from home might cost them the break that makes profit on the sale of a home tax-free. Generally, you have to live in a house for two of the past five years to get tax-free profit. But Congress made it clear that time away from home serving your country doesn't count against you.

Here at home, another new break lets National Guard and Reserve members deduct some of their travel expenses for drills or meetings. If you have to travel more than 100 miles and stay over at least one night, you can write off the cost of food, lodging and transportation -- even if you don't itemize deductions.