Quick Answer
Military members can claim unreimbursed uniform costs up to 2% of AGI, moving expenses for PCS orders, combat pay exclusion (up to $63,000 for 2026), reserve travel expenses, and home office deductions for Guard/Reserve duties. Active duty members may also exclude combat pay entirely from taxable income.
Best Answer
Robert Kim, Tax Return Analyst
Best for active duty service members across all branches looking to maximize their tax deductions
What are the main tax deductions for military members?
Military members have access to several unique tax deductions that civilian taxpayers cannot claim. The most valuable is the combat pay exclusion, which allows you to exclude up to $63,000 of combat pay from federal income taxes for 2026.
Combat Pay Exclusion - The biggest benefit
If you served in a combat zone, you can exclude ALL of your combat pay from federal taxes. For example, if you earned $50,000 in combat pay during deployment, that's $50,000 that isn't subject to federal income tax. At a 22% tax bracket, that saves you $11,000 in federal taxes.
Important: You can still contribute combat pay to a Roth IRA even though it's excluded from taxes, giving you tax-free retirement growth.
Uniform and equipment costs
You can deduct unreimbursed uniform costs that exceed 2% of your adjusted gross income (AGI). This includes:
Example: If your AGI is $60,000, you need more than $1,200 in uniform expenses to claim this deduction.
Moving expenses for PCS orders
Unlike civilians, military members can still deduct moving expenses when relocating due to Permanent Change of Station (PCS) orders. This includes:
Reserve and Guard member deductions
If you're in the National Guard or Reserves, you can deduct:
Example: Annual deduction calculation
Let's say you're a Staff Sergeant (E-6) with $55,000 AGI:
Special situations
Deployed spouses: If your spouse earned income while you were deployed, they may qualify for earned income credit benefits.
State taxes: Many states don't tax military pay for non-residents. If you maintain legal residence in a no-tax state like Texas or Florida, you may avoid state income taxes entirely.
What you should do
1. Keep detailed records of all military-related expenses throughout the year
2. Save all orders, receipts, and travel documentation
3. Consider using tax software that specifically handles military situations
4. Use our return scanner to identify military deductions you might have missed
[Use our return scanner tool to find missed military deductions →](return-scanner)
Key takeaway: Military members can save thousands through combat pay exclusion alone, plus additional deductions for uniforms, moves, and Reserve/Guard duties that civilians cannot claim.
*Sources: [IRS Publication 3](https://www.irs.gov/pub/irs-pdf/p3.pdf) - Armed Forces Tax Guide, [IRS Publication 521](https://www.irs.gov/pub/irs-pdf/p521.pdf) - Moving Expenses*
Key Takeaway: Combat pay exclusion is the biggest military tax benefit, potentially saving thousands in federal taxes, while uniform and travel deductions provide additional savings.
Military tax deductions by service type
| Deduction Type | Active Duty | Guard/Reserve | Veterans |
|---|---|---|---|
| Combat pay exclusion | ✓ Full exclusion | ✓ During deployments | ✗ No longer eligible |
| Uniform costs | ✓ Over 2% AGI | ✓ Over 2% AGI | ✗ Unless Guard/Reserve |
| PCS moving expenses | ✓ All PCS moves | ✗ Not applicable | ✗ No longer eligible |
| Drill travel expenses | ✗ Not applicable | ✓ Over 100 miles | ✓ If still serving |
| Home office (military use) | ✗ Rare | ✓ If qualifying | ✓ If Guard/Reserve |
More Perspectives
Diana Flores, Tax Credits & Amendments Specialist
Best for Guard and Reserve members who have civilian jobs and military duties
Special deductions for Guard and Reserve members
As a Guard or Reserve member, you have unique tax benefits that bridge civilian and military life. The key difference from active duty is that you can claim travel expenses for drill periods as an above-the-line deduction.
Travel deduction for drills
If you travel more than 100 miles from home to your drill site, you can deduct:
Example: Monthly drill 150 miles from home (300 miles round-trip):
Home office deduction
If you use part of your home exclusively for Guard/Reserve administrative duties, you may qualify for the home office deduction. This is rare but possible if you:
Annual training periods
Two-week annual training qualifies for the same travel deductions as monthly drills, often resulting in larger deduction amounts due to extended lodging and meal expenses.
Key takeaway: Guard and Reserve members can deduct travel expenses for drills over 100 miles from home, potentially saving hundreds in taxes annually.
Key Takeaway: Guard and Reserve members can deduct drill travel expenses, with mileage alone often providing $500+ in annual tax savings.
Robert Kim, Tax Return Analyst
Best for veterans who are no longer active duty but may still have military-related deductions
Tax deductions available to military veterans
While veterans lose access to active-duty deductions like combat pay exclusion, several military-related deductions may still apply depending on your situation.
Disability-related deductions
VA disability compensation is not taxable income, but related medical expenses may be deductible:
Continued Guard/Reserve service
If you continue serving in the Guard or Reserves after active duty, all the Reserve member deductions still apply:
Educational benefits and taxes
GI Bill benefits are generally not taxable, but be aware of:
Job search expenses
Veterans transitioning to civilian careers could previously deduct job search expenses, but this was suspended from 2018-2025. Starting in 2026, these deductions return:
Example: If you spend $1,500 on job search activities and they exceed 2% of your AGI, the excess is deductible.
Key takeaway: Veterans maintain some military-related deductions through continued Guard/Reserve service and can claim disability-related medical expenses not covered by the VA.
Key Takeaway: Veterans can still claim deductions for continued Guard/Reserve service and disability-related medical expenses not covered by VA benefits.
Sources
- IRS Publication 3 — Armed Forces Tax Guide
- IRS Publication 521 — Moving Expenses
Related Questions
Reviewed by Robert Kim, Tax Return Analyst on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.