§134 — Title 26 Internal Revenue Code | U.S. Code

Summary

Certain military benefits do not have to be counted as taxable income. A "qualified military benefit" is an allowance or in-kind benefit (not personal use of a vehicle) given to a service member, former member, or their dependent because of the member’s service, if that benefit was excluded from income on September 9, 1986 under any law, rule, or government practice in effect that day (not including the Internal Revenue Code). A benefit is only treated this way if it meets that rule or is excluded under the tax code without relying on other laws not in the tax code or in a revenue act. Changes after September 9, 1986 are generally ignored, except for cash adjustments tied to cost or price changes under laws/rules in effect that day and certain later changes to death gratuity under chapter 75 of title 10. The rule also covers a dependent care assistance program as then in effect, the travel benefit under section 2613 of title 10 as then in effect, and State or local bonus payments for service in a combat zone (as defined in section 112(c)(2), ignoring the parenthetical).

Title 26, §134

Internal Revenue Code — Source: USLM XML via OLRC

(a)Gross income shall not include any qualified military benefit.

(b)For purposes of this section—

(1)The term “qualified military benefit” means any allowance or in-kind benefit (other than personal use of a vehicle) which—

(A)is received by any member or former member of the uniformed services of the United States or any dependent of such member by reason of such member’s status or service as a member of such uniformed services, and

(B)was excludable from gross income on September 9, 1986, under any provision of law, regulation, or administrative practice which was in effect on such date (other than a provision of this title).

(2)Notwithstanding any other provision of law, no benefit shall be treated as a qualified military benefit unless such benefit—

(A)is a benefit described in paragraph (1), or

(B)is excludable from gross income under this title without regard to any provision of law which is not contained in this title and which is not contained in a revenue Act.

(3)(A)Except as provided in subparagraphs (B) and (C) and paragraphs (4) and (5), no modification or adjustment of any qualified military benefit after September 9, 1986, shall be taken into account.

(B)Subparagraph (A) shall not apply to any adjustment to any qualified military benefit payable in cash which—

(i)is pursuant to a provision of law or regulation (as in effect on September 9, 1986), and

(ii)is determined by reference to any fluctuation in cost, price, currency, or other similar index.

(C)Subparagraph (A) shall not apply to any adjustment to the amount of death gratuity payable under chapter 75 of title 10, United States Code, which is pursuant to a provision of law enacted after September 9, 1986.

(4)For purposes of paragraph (1), such term includes any dependent care assistance program (as in effect on the date of the enactment of this paragraph) for any individual described in paragraph (1)(A).

(5)The term “qualified military benefit” includes a travel benefit provided under section 2613 of title 10, United States Code (as in effect on the date of the enactment of this paragraph).

(6)The term “qualified military benefit” includes any bonus payment by a State or political subdivision thereof to any member or former member of the uniformed services of the United States or any dependent of such member only by reason of such member’s service in a combat zone (as defined in section 112(c)(2), determined without regard to the parenthetical).

Notes & Related Subsidiaries

Editorial Notes

References in Text

The date of the enactment of this paragraph, referred to in subsec. (b)(4), is the date of enactment of Pub. L. 108–121, which was approved Nov. 11, 2003. The date of the enactment of this paragraph, referred to in subsec. (b)(5), is the date of enactment of Pub. L. 108–375, which was approved Oct. 28, 2004.

Prior Provisions

A prior section 134 was renumbered section 140 of this title.

Amendments

2018—Subsec. (b)(6). Pub. L. 115–141 substituted “a combat” for “an combat”. 2008—Subsec. (b)(6). Pub. L. 110–245 added par. (6). 2004—Subsec. (b)(3)(A). Pub. L. 108–375, § 585(b)(2)(A), substituted “paragraphs (4) and (5)” for “paragraph (4)”. Subsec. (b)(5). Pub. L. 108–375, § 585(b)(1), added par. (5). 2003—Subsec. (b)(3)(A). Pub. L. 108–121, § 106(b)(1), inserted “and paragraph (4)” after “subparagraphs (B) and (C)”. Pub. L. 108–121, § 102(b)(2), substituted “subparagraphs (B) and (C)” for “subparagraph (B)”. Subsec. (b)(3)(C). Pub. L. 108–121, § 102(b)(1), added subpar. (C). Subsec. (b)(4). Pub. L. 108–121, § 106(a), added par. (4). 1988—Subsec. (b)(1). Pub. L. 100–647, § 1011B(f)(2)(A), inserted “(other than personal use of a vehicle)” after “in-kind benefit” in introductory text. Subsec. (b)(1)(B). Pub. L. 100–647, § 1011B(f)(1), substituted “, regulation, or administrative practice” for “or regulation thereunder”. Subsec. (b)(3)(A). Pub. L. 100–647, § 1011B(f)(3), struck out “under any provision of law or regulation described in paragraph (1)” after “September 9, 1986,”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2008 Amendment Pub. L. 110–245, title I, § 112(b),

June 17, 2008, 122 Stat. 1635, provided that: “The amendment made by this section [amending this section] shall apply to payments made before, on, or after the date of the enactment of this Act [

June 17, 2008].”

Effective Date

of 2004 Amendment Pub. L. 108–375, div. A, title V, § 585(b)(3), Oct. 28, 2004, 118 Stat. 1932, provided that: “The

Amendments

made by this subsection [amending this section and section 3121, 3306, and 3401 of this title] shall apply to travel benefits provided after the date of the enactment of this Act [Oct. 28, 2004].”

Effective Date

of 2003 Amendment Pub. L. 108–121, title I, § 102(b)(3), Nov. 11, 2003, 117 Stat. 1337, provided that: “The

Amendments

made by this subsection [amending this section] shall apply with respect to deaths occurring after September 10, 2001.” Pub. L. 108–121, title I, § 106(c), Nov. 11, 2003, 117 Stat. 1339, provided that: “The

Amendments

made by this section [amending this section and section 3121, 3306, and 3401 of this title] shall apply to taxable years beginning after December 31, 2002.”

Effective Date

of 1988 Amendment Pub. L. 100–647, title I, § 1011B(f)(2)(B), Nov. 10, 1988, 102 Stat. 3490, provided that: “The amendment made by subparagraph (A) [amending this section] shall apply to taxable years beginning after December 31, 1986.” Amendment by section 1011B(f)(1), (3) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.

Effective Date

Pub. L. 99–514, title XI, § 1168(c), Oct. 22, 1986, 100 Stat. 2513, as amended by Pub. L. 100–647, title I, § 1011B(f)(4), Nov. 10, 1988, 102 Stat. 3490, provided that: “The

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made by this section [enacting this section] shall apply to taxable years beginning after December 31, 1984.” No Inference To Be Drawn From Amendment by Pub. L. 108–121 Pub. L. 108–121, title I, § 106(d), Nov. 11, 2003, 117 Stat. 1339, provided that: “No inference may be drawn from the

Amendments

made by this section [amending this section and section 3121, 3306, and 3401 of this title] with respect to the tax treatment of any amounts under the program described in section 134(b)(4) of the Internal Revenue Code of 1986 (as added by this section) for any taxable year beginning before January 1, 2003.”

§134 Certain military benefits

Summary

Title 26, §134

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