Dear, Field Problems:

I keep hearing about all of these financial benefits that we should be taking advantage of while my husband is deployed, but I haven’t got a clue where to find out more information on what they are. Can you help?

Teresa; Aberdeen, MD; National Guard spouse

Dear, Teresa:

No one likes deployment, but there is something to be said about the extra “boost” to your finances during the time your soldier is away.

Tax savings

The first and most obvious benefit to your finances is the absence of federal taxes due to the Combat Zone Tax Exclusions. According to the Department of Defense, “Earnings received while in the combat zone are excluded from taxable income. This exclusion is unlimited for enlisted members and warrant officers and is only limited slightly for officers. If you spend a single qualifying day in the combat zone, your pay for the entire month is excluded from taxable income.” Depending on what your husband is paid, this could be several hundred dollars. Check your Leave and Earnings Statement for an exact amount.

Extra pay

Your service member might also be entitled to a couple other “automatic” financial benefits depending on his location such as:

• Family Separation Allowance (FSA or FSH on the LES) may be payable at $250 per month and accrues from the day of departure from the home station and ends the day prior to arrival at the home station, in addition to any per diem or other entitlements.
• Hostile Fire Pay (HFP/IDP on the LES): A member of a uniformed service may be paid special pay at the rate of $225 for any month in which he or she was entitled to basic pay. The monthly entitlement exists when a member receiving basic pay performs duty for any part of the month in an area subject to “hostile fire.”

To find out more about what benefits actually apply to your situation check out the Defense Finance and Accounting System online at http://www.dfas.mil/dfas/militarymembers.html.

SCRA savings

Another thing you should look into is the Service Member’s Civil Relief Act. The SCRA provides a wide range of protections for individuals entering the military, called to active duty in the military, or deployed. It is intended to postpone or suspend certain civil obligations to enable service members to devote full attention to duty and relieve stress on the family members of deployed service members.

What does that mean to you? It could mean quite a few bucks. If you have acquired debt with higher than 6% interest (credit cards or whatever), before you were in the service, you may qualify for this reduction. Similar to the 6% interest rate, if a service member or spouse is committed in an installment contract or auto lease and has made at least one payment before active service, then they will be eligible for protection from repossession and contract termination under SCRA. If you’re not sure, send the information in to the finance company. A lot of them will automatically honor the reduction.

You can check out some frequently asked questions about the SCRA on Military.com.

Get the most out of savings

Saving can be an easier thing to do during deployment, so be sure to take advantage of all the savings opportunities out there. One example is the Department of Defense Savings Deposit Program. It was established to provide members of the uniformed services serving in a designated combat zone the opportunity to build their financial savings. Amounts up to $10,000 may be deposited, earning 10% interest annually. Members must be receiving Hostile Fire Pay and be deployed for at least 30 consecutive days, or one day in each of three consecutive months in order to participate in the program.

Of course, there are also great community discounts and programs benefiting deployed service members and their families. Check with your local cable company, phone company, electric company, and any local retail businesses for a military discount or “deployment” discount. And always carry your military ID, deployment orders, and Power of Attorney to assist with eligibility.