Title 26, Internal Revenue CodeRelease 119-110
§134 Certain Military Benefits
Title 26 › Subtitle A — Income Taxes › CHAPTER 1 — NORMAL TAXES AND SURTAXES › Subchapter B — Computation of Taxable Income › PART III — ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME › § 134
Summary
Gross income must not include any qualified military benefit. Qualified military benefit — an allowance or in-kind benefit (not personal use of a vehicle) given to a member or former member of the U.S. uniformed services or to their dependent because of the member’s service, and that was tax-free on September 9, 1986 under laws, rules, or practices then in effect (not counting the Internal Revenue Code). Only benefits that meet this rule or that are excluded under the tax code itself qualify. Changes to benefits after September 9, 1986 generally do not count, except cost-of-living type adjustments under rules in effect that day, later increases to the death gratuity under chapter 75 of title 10, certain dependent-care programs and Operation Hero Miles travel benefits as of enactment, and state combat-zone bonus payments.
Full Legal Text
Title 26, §134
Internal Revenue Code, Source: USLM XML via OLRC
(a)General rule
Gross income shall not include any qualified military benefit.
(b)Qualified military benefit
For purposes of this section
(1) In general
(2)No other benefit to be excludable except as provided by this title
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)Limitations on modifications
(A)In general
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)Exception for certain adjustments to cash benefits
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)Exception for death gratuity adjustments made by law
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)Clarification of certain benefits
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)Travel benefits under operation hero miles
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)Certain State payments
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).
Legislative History
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
Amendments
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.”
Reference
Citations & Metadata
Citation
26 U.S.C. § 134
Title 26, Internal Revenue Code
Last Updated
Sep 22, 2026
Release point: 119-110