460-7 SPECIAL RULES FOR A SPOUSE IN THE MILITARY
Members of the military receive their wages through the Leave and Earnings Statement (LES). This statement reflects a military person’s monthly payments and allowances, tax deductions, and other allotments that are deducted from their gross pay. See Addendum 2 for a detailed list of LES Entitlement, Deduction and Allotment definitions and instructions on how to count each in the military household’s benefit determination.
How the resources, income, and deductions of military personnel affect the household’s benefits depends on the program policy.
See APA MS 460-1G for the definition of a deployed spouse.
Types of resources typical to a military person’s household are as follows:
Types of income typical to a military person’s household are as follows:
1. Countable Income
Payments and allowances shown in the Entitlements section of the LES will be considered income. The most common of these are base pay, or basic pay, basic allowance for subsistence (BAS), a military person’s food allowance, and basic allowance for housing (BAH).
Example:
Tyson and his wife move to a new off-base location. He receives his monthly rent on his LES . His BAH allotment in the entitlement column is $1500. Tyson’s landlord verifies that his monthly rent is $1300. The $1500 BAH is countable income.
Example:
William receives his LES and it shows a CMA of $125 in the entitlement column. In the deduction column, the CMA is listed as $100. Even though William did not spend the entire amount of the clothing allowance the entire $125 is countable income.
Excluded Income
Clothing Maintenance Allowance (CMA) is excluded when received as a refund. See APA MS 440-3D.
Dislocation Allowance (DLA) or any other allowance which are one-time payments, will only count as income if the allowance can be anticipated.
Military retirement pay that goes to an ex-spouse under a divorce decree property settlement is not counted as income to the retiree. See APA MS 460-6(A)(2).
Combat Pay (hostile fire and imminent danger payment)
Combat pay is excluded as income. Disregard any amount of combat pay that goes to the household in excess of the military person’s pre-deployment earnings. Combat pay will be listed in the Entitlements column, and may appear as follows:
Combat pay
Hostile fire pay
Imminent danger pay
Incentive pay for hazardous duty
SAVE
Hardship duty pay-Location
Hardship duty pay-Mission
Hardship duty pay-Involuntary Extension
Note:
Combat zones are designated by an Executive Order from the President as areas in which the U.S. Armed Forces are engaging or have engaged in combat. For combat pay to be excluded as income, the military person must be deployed to one of the combat zones listed at: http://www.irs.gov/newsroom/article/0,,id=108331,00.html
Budgeting Combat Pay
Once the military person is deployed to a combat zone:
If the amount provided to the household is equal to or less than the amount provided before deployment, the amount provided is countable income.
If the amount provided to the household is more than the amount provided before deployment, the additional amount is considered exempt combat pay.
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