Military families in the DMV region (DC, Maryland, Virginia) face unique challenges at tax time — from PCS moves to combat pay exclusions to navigating joint filings when one spouse is deployed. If you’re stationed in our area, you may qualify for special military tax benefits.

As a CPA in Fredericksburg, VA, I serve active-duty service members, reservists, and veterans stationed at local bases including:

• Marine Corps Base Quantico (VA)

• Fort Belvoir (VA)

• Joint Base Myer–Henderson Hall (Arlington, VA)

• Pentagon (Arlington, VA)

• Naval Support Facility Dahlgren (VA)

• Joint Base Andrews (MD)

• Joint Base Anacostia–Bolling (DC)

• Walter Reed National Military Medical Center (Bethesda, MD)

• Fort Meade (MD)

Key Federal Tax Benefits for Military Members

Permanent Change of Station (PCS) Moves
Active-duty members can still deduct certain unreimbursed moving expenses (transport, storage, travel) when moving due to PCS orders. Civilian moving expenses are no longer deductible, but this military carve-out remains.

Combat Pay Exclusion
If you serve in a combat zone, enlisted and warrant officers can exclude all pay earned during that month. Commissioned officers may exclude up to the highest enlisted pay plus hostile fire/imminent danger pay. Even better: you may choose to count excluded combat pay as earned income for the Earned Income Tax Credit (EITC), which can increase refunds.

Automatic Deadline Extensions
Deployed service members get an automatic 180-day extension after leaving a combat zone to file taxes, pay balances due, and make elections. Extra days are added for time served overseas.

Uniform Costs
If regulations prohibit wearing certain uniforms off duty, you may deduct their cost and upkeep, reduced by any reimbursement or allowance received. Everyday items like PT gear or shoes are not deductible.

Joint Returns While Deployed
Spouses can use a power of attorney (Form 2848) to file a joint return if one spouse is away on duty.

Reserve Duty Travel
Reservists can deduct unreimbursed travel costs (mileage, lodging, 50% of meals) for duties performed more than 100 miles away from home. This is an “above-the-line” deduction, so you can claim it without itemizing.

ROTC Students
Subsistence allowances in advanced ROTC training are not taxable. However, active-duty pay received during summer advanced camps or training is taxable.

Transitioning to Civilian Life
Service members separating from the military may deduct certain job search expenses like travel for interviews, resume prep, or outplacement agency fees. Moving expenses may also be deductible if related to starting a new job.

State Tax Benefits for Military Families

Servicemembers Civil Relief Act (SCRA)
Military pay is taxed only by your state of legal residence (domicile) — not your duty-station state. This prevents double taxation. For example, if you’re domiciled in Texas but stationed in Virginia, Virginia cannot tax your active-duty wages.

Military Spouses Residency Relief Act (MSRRA)
MSRRA allows military spouses to elect to keep the servicemember’s state of residence for income tax purposes if they move solely due to military orders. This can mean avoiding state tax in the duty-station state if proper residency ties are maintained. Employers usually require an MSRRA affidavit for correct withholding.

Virginia Military Subtractions

• Basic Pay Subtraction – Virginia residents on extended active duty (>90 days) may subtract up to $15,000 of basic pay, phased out between $15,000–$30,000.

• Military Retirement Subtraction – Beginning with TY 2024, Virginia allows a $30,000 subtraction, increasing to $40,000 in TY 2025+, for military retirement income. Importantly, the age-55 requirement was removed, so younger retirees now qualify.

Other States

• States with no income tax (TX, FL, TN, WA, SD, NV, WY, AK) are attractive for domicile.

• Many states also exempt nonresident active-duty pay for those stationed within their borders under orders.

Supporting Military Families in the DMV

Whether you’re at Quantico, Fort Belvoir, Andrews AFB, or Walter Reed, the DMV is home to thousands of military families. Each situation is unique, especially when factoring PCS moves, combat pay, state residency elections, and retirement benefits.

At AI Tax Consulting PLLC, I help service members, spouses, and veterans navigate these complex rules to:

• Maximize deductions

• Avoid double taxation

• Ensure state and federal compliance

• Plan ahead for retirement or transition to civilian life

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Proudly serving the military community in Northern Virginia, Maryland, and DC.

Learn More

For official IRS resources on military tax benefits, visit:
👉 IRS – Tax Filing Tips for Military Service Members and Veterans