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I am an airline pilot flying trips into Afganistan war zones. I spend about 5 to 8 hrs there and return back to Dubai to pick up the next load. What tax benefits am I entitled to for operating into these areas? Where can I find this information?

XXXXX@XXXXXX.XXX

Submitted: 87 days and 8 hours ago.

Category: Tax

Value: $20

Status: CLOSED

Country/State/Province of question: colorado, usa

Already Tried:
I have searched various web sites however, they many talk about contractors. I have not really found anythink pertaining to a pilot that flies into such danger zones. We pilots are not receiving any hazardous pay from the company and it appears that the contractor maybe keeping it for themselfs. Other airlines do receive the pay. I was told that the month that you operate into a war zone, your pay for that month is tax exempt. How do I find out about this exemption, and where can I find it?

Accepted Answer

Hello XXXXXXXXX,

There is a provision in the law which allows members of the US Armed Forces who are serving in a combat zone to exclude that pay from their taxable income, but this provision only applies to members of the US Armed Forces, and is not available to civilian employees.

http://www.jag.navy.mil/organization/documents/tax/Summary%20of%20Combat%20Zone%20Tax%20Benefits-Tri-Fold-09.pdf

As a civilian employee, if you spend a total of 330 days out of a consecutive 12 month period working in a foreign country, you would be entitled to the Foreign Earned Income Exclusion, which allows you to excude $91,400 from your foreign earned income before tax is due on any additional earnings. This exclusion applies to income you receive from any country outside of the US, as long as you meet the 330 day residency requirement. However, there are no special tax breaks that apply strictly to combat zones except for military personnel.

The company that you work for may be receiving extra money for providing their services in this area, and if they were to pay you a higher amount as an employee for your services in a combat zone, the amount you are paid would still be fully subject to tax.

If this was helpful please press the Accept button.

Thank you cobykinjr and let me know if you have more questions. I am happy to help you with whatever I can.

Accepts:
Expert:	Merlo
Pos. Feedback:	99.8 %
Answered:	8/27/2009

Accountant

25+ years tax consulting. Specializing in returns for US citizens living abroad

Posted by Merlo 87 days and 6 hours ago.

Answer

Hello XXXXXXXXX,

There is a provision in the law which allows members of the US Armed Forces who are serving in a combat zone to exclude that pay from their taxable income, but this provision only applies to members of the US Armed Forces, and is not available to civilian employees.

http://www.jag.navy.mil/organization/documents/tax/Summary%20of%20Combat%20Zone%20Tax%20Benefits-Tri-Fold-09.pdf

As a civilian employee, if you spend a total of 330 days out of a consecutive 12 month period working in a foreign country, you would be entitled to the Foreign Earned Income Exclusion, which allows you to excude $91,400 from your foreign earned income before tax is due on any additional earnings. This exclusion applies to income you receive from any country outside of the US, as long as you meet the 330 day residency requirement. However, there are no special tax breaks that apply strictly to combat zones except for military personnel.

The company that you work for may be receiving extra money for providing their services in this area, and if they were to pay you a higher amount as an employee for your services in a combat zone, the amount you are paid would still be fully subject to tax.

If this was helpful please press the Accept button.

Thank you cobykinjr and let me know if you have more questions. I am happy to help you with whatever I can.

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I am an airline pilot flying trips into Afganistan war zones. I spend about 5 to 8 hrs there and return back to Dubai to pick up the next load. What tax benefits am I entitled to for operating into these areas? Where can I find this information?

XXXXX@XXXXXX.XXX

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I am an airline pilot flying trips into Afganistan war zones. I spend about 5 to 8 hrs there and return back to Dubai to pick up the next load. What tax benefits am I entitled to for operating into these areas? Where can I find this information? XXXXX@XXXXXX.XXX

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I am an airline pilot flying trips into Afganistan war zones. I spend about 5 to 8 hrs there and return back to Dubai to pick up the next load. What tax benefits am I entitled to for operating into these areas? Where can I find this information?

XXXXX@XXXXXX.XXX