By Carl Surran
Imminent Danger Pay
Fall 2004
Who is entitled to imminent danger pay? The Defense Authorization Act extends the increase in imminent danger pay of $225 per month (often tax-free) to all eligible servicemembers. Enlisted troops and warrant officers serving in a designated combat zone or qualified hazardous duty area for any part of a month exclude all gross income earned for military service that month from federal taxation.
Current designated combat zones include Afghanistan, Iraq, Kuwait, Saudi Arabia, Oman, Bahrain, Qatar, the United Arab Emirates and parts of Kosovo. Service members serving in areas specified in law as "qualified hazardous duty areas" are Bosnia-Herzegovina, Croatia and Macedonia. Personnel with specific questions should contact their unit pay officials or tax assistance officer.
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