Posted on Dec 9, 2020
Is a sign-on bonus installment tax free if it was received while in Kuwait?
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Posted 4 y ago
Responses: 1
I think bonuses are only tax free if you're in a designated combat zone...is Kuwait still designated a combat zone? I thought that designation went away several years ago.
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SPC (Join to see)
I’m really not sure. I thought not but to use the savings deposit program you are suppose to be in a combat zone and I thought Kuwait wasn’t considered a combat zone so I waited till I arrived in KSA to set it up but they backdated it to the day I arrived in Kuwait and told me it’s considered a combat zone for the savings deposit program. Really confusing bc I didn’t receive any extra payments or IDF while in Kuwait.
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I got a sign on bonus and one of the installments will be received while in Kuwait and I did get tax credits on my LES while in Kuwait. So I’m wondering if I’ll get my tax credits for my bonus also or if it will just be tax since it was my sign on bonus that I signed for stateside when I first enlisted.
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