Filing your taxes while deployed can be stressful, especially when you’re dealing with limited internet access, time zone differences, and the demands of military service. Fortunately, the IRS provides special tax rules, exclusions, and automatic extensions for deployed service members, particularly those serving in combat zones.
This guide explains how filing taxes while deployed works for the 2026 tax season (the 2025 tax year), what benefits may apply, and how military families can avoid common mistakes.
Do You Have to File Taxes While Deployed?
Yes, deployment does not eliminate the requirement to file a federal tax return if you meet IRS filing thresholds. However, your deployment status can affect:
- When you must file
- Whether certain income is taxable
- Who can file on your behalf
Your tax obligations depend on whether you are deployed to a combat zone, your marital status, and your income sources.
Combat Zone Tax Benefits
Service members deployed to a designated combat zone or qualified contingency operation may qualify for significant federal tax relief.
Combat Zone Tax Exclusion (CZTE)
For the 2025 tax year:
- Enlisted service members and warrant officers may exclude most military pay earned in a combat zone from federal income tax
- Commissioned officers may exclude pay up to the monthly statutory limit
- Hostile Fire Pay / Imminent Danger Pay is also excluded. This exclusion can substantially reduce taxable income and may increase refunds.
Note: Allowances such as BAH and BAS are already non-taxable and are not affected by combat zone status.
2026 Tax Season Deadlines for Deployed Service Members
Federal tax returns for the 2025 tax year are generally due on April 15, 2026, but deployed service members may qualify for automatic extensions.
Automatic Extension for Service Members Stationed Overseas (Not in a Combat Zone)
If you are serving outside the United States or Puerto Rico, but not in a designated combat zone:
- You receive an automatic two-month extension
- New filing deadline: June 15, 2026
- Penalties are waived, but interest may accrue on unpaid taxes after April 15
- A brief statement explaining overseas service should be included if filing after April 15
Combat Zone Extension
If you are serving in a designated combat zone, you receive at least 180 days after leaving the combat zone to:
- File your tax return
- Pay any tax owed
- No penalties or interest accrue during this period
- The extension also applies to many other IRS deadlines, including estimated payments and certain claims
- You do not need to file IRS Form 4868 to receive this extension.
Filing Options While Deployed
Electronic Filing
E-filing is typically the fastest and most secure option. Refunds can be deposited directly into your bank account
Power of Attorney (POA)
You may authorize a spouse or trusted individual to file on your behalf using IRS Form 2848.
This is common for married service members filing jointly during deployment.
Free Military Tax Resources
Military OneSource offers free tax preparation software and professional assistance. Installation tax centers may provide support before or after deployment.
Special Considerations for Military Families
Married Filing Jointly
A non-deployed spouse may file jointly with proper authorization. Combat zone exclusions still apply to the deployed service member’s eligible income.
State Taxes
State tax treatment varies:
- Some states do not tax military pay at all
- Others exempt pay earned while stationed out of state
- Residency protections under the Servicemembers Civil Relief Act (SCRA) may apply
Because state rules differ and change frequently, it’s important to review your specific situation each year.
Common Tax Mistakes During Deployment
- Forgetting to claim the combat zone tax exclusion
- Missing deadlines due to misunderstanding automatic extensions
- Filing jointly without proper authorization
- Misreporting special pays or bonuses
- Overlooking state tax requirements
Avoiding these mistakes can prevent delayed refunds, IRS notices, and added stress after returning home.
How Walters Financial Wellness Can Help
As a financial counselor, I help service members and military families prepare for tax season before, during, and after deployment. I can help:
- Explain how deployment affects your taxes
- Review taxable vs. non-taxable income
- Help plan for refunds or balances due
- Coordinate tax planning with PCS moves and budgeting
- Support spouses filing during deployment
When tax planning is aligned with your financial goals, you gain clarity and confidence. Click [here] to connect with Walters Financial Wellness.
Disclaimer
The information in this blog post is for educational purposes only and does not constitute legal, tax, or financial advice. Always consult a qualified accountant, attorney, or financial professional before making decisions.