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New Member
posted Feb 13, 2023 7:53:15 PM

Does BAH and BAS count as Nontaxable Income?

First time I have seen/do not remember seeing Military basic quarters and subsistence allowances as nontaxable income. I'm not sure if its correct to include that or not.

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1 Replies
Expert Alumni
Feb 14, 2023 5:30:32 AM

Your BAH and BAS are counted as nontaxable Income and should appear in Form W-2, box 12 with code Q.

 

Nontaxable pay includes:

  • Combat pay
  • The Basic Allowance for Housing (BAH)
  • The Basic Allowance for Subsistence (BAS)

There is a special exception for this pay. You are allowed to claim this income for purposes of the Earned Income Tax Credit. In that section it will ask if you want to include and it might improve your refund. You can try it both ways and see which has the best impact on your return.