Origin: Due to its reliance on the Internal Revenue Code (Code) for purposes of determining income, Massachusetts excludes several benefits to members of the armed services, including, under IRC § 112 (i) compensation earned by members of the Armed Forces serving in a combat zone and (ii) income received by such individuals who were hospitalized as a result of injury incurred while serving in a combat zone, and under IRC § 134, certain qualified military benefits, such as certain medical and disability benefits, moving allowances, dependent care assistance, and certain travel benefits.
Tax Type
Tax Expenditure
Item Number
Item Name
Description
Origin
FY2023
FY2024
FY2025
FY2026
FY2027
Personal Income Tax
Exclusions from Gross Income
1.024
Exemption of Benefits, Allowances, and Combat Zone Pay to Armed Forces Personnel
Due to its reliance on the Internal Revenue Code (Code) for purposes of determining income, Massachusetts excludes several benefits to members of the armed services, including, under IRC § 112 (i) compensation earned by members of the Armed Forces serving in a combat zone and (ii) income received by such individuals who were hospitalized as a result of injury incurred while serving in a combat zone, and under IRC § 134, certain qualified military benefits, such as certain medical and disability benefits, moving allowances, dependent care assistance, and certain travel benefits.
IRC §§ <a href="https://www.law.cornell.edu/uscode/text/26/112" target="_blank">112</a>, <a href="https://www.law.cornell.edu/uscode/text/26/134" target="_blank">134</a>
15.3
16.1
16.4
16.9
17.7
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