IRS Pub 3 – As a member of the U.S. Armed Forces, navigating tax season can feel overwhelming, especially with unique rules that apply to active-duty service members. IRS Publication 3, also known as the Armed Forces’ Tax Guide, is a comprehensive resource designed specifically for you. Updated for the 2025 tax year, this guide outlines special tax situations, benefits, and requirements to help ensure you file accurately and maximize your deductions and credits. Whether you’re deployed in a combat zone or stationed stateside, understanding Pub 3 can save you time and money.
In this SEO-optimized article, we’ll break down the key elements of IRS Pub 3, including what’s new for 2025, filing essentials, combat zone exclusions, and more. We’ll also provide a direct download link to the official PDF.
What Is IRS Publication 3?
IRS Publication 3 is the official tax guide tailored for active members of the U.S. Armed Forces, including the Army, Navy, Air Force, Marines, and Coast Guard. It focuses on special tax scenarios that differ from those for civilian taxpayers, such as combat pay exclusions and moving expense deductions. Importantly, it does not cover military pensions, veterans’ benefits, or general tax rules that apply to everyone. This guide is essential for active-duty personnel, reservists, and their families to comply with IRS requirements while taking advantage of military-specific tax breaks.
Published annually by the Internal Revenue Service, the 2025 edition was released on January 13, 2026, and is intended for preparing 2025 tax returns. It’s a must-read for anyone in uniform looking to optimize their tax filing.
What’s New in the 2025 Armed Forces’ Tax Guide?
The IRS regularly updates Publication 3 to reflect changes in tax laws. For the 2025 tax year, several key updates stand out:
- Due Date for Returns: File your Form 1040 or 1040-SR by April 15, 2026 (or the next business day if it falls on a weekend or holiday).
- Increased Standard Deduction: The amounts have risen for all filers. For 2025, it’s $15,750 for single filers or married filing separately, $31,500 for married filing jointly or qualifying surviving spouses, and $23,625 for heads of household.
- Child Tax Credit (CTC) Enhancements: The maximum CTC increases to $2,200 per qualifying child under age 17. Eligibility now requires a valid Social Security Number (SSN) issued before the return due date, valid for employment. For joint filers, only one spouse needs a valid SSN; the other can use an SSN or Individual Taxpayer Identification Number (ITIN).
- Form 1099-K Reporting: For business transactions exceeding $20,000 and 200 transactions, you’ll receive a Form 1099-K from payment processors.
- Nontaxable Combat Pay Election: Updates from prior revisions continue to apply, allowing service members to elect to include nontaxable combat pay in earned income for credits like the Earned Income Credit (EIC).
- Supplemental Housing Allowances: Recent IRS guidance confirms that supplemental Basic Allowance for Housing (BAH) payments, such as the $1,776 payment issued in late 2025, are nontaxable qualified military benefits under IRC Section 134.
These changes reflect broader tax law adjustments, including extensions from the Tax Cuts and Jobs Act and modifications to energy credits. Always check the latest IRS updates for your specific situation.
Key Tax Filing Requirements for Military Personnel
Filing taxes as a service member follows many standard rules but includes military-specific nuances:
- Forms to Use: Most file Form 1040 or 1040-SR. Electronic filing is encouraged for faster refunds.
- Who Must File: If your gross income meets certain thresholds (which increased for 2025), you’re required to file. See the Instructions for Form 1040 for details.
- Aliens in the Armed Forces: U.S. citizens and resident aliens file as usual. Nonresident aliens use Form 1040-NR for U.S.-sourced income. Dual-status aliens have combined rules.
- Signing Returns: Use an electronic PIN or sign paper forms. Special rules apply for deployed spouses, including power of attorney via Form 2848.
- Change of Address: Notify the IRS using Form 8822 or 8822-B.
For same-sex marriages and registered domestic partnerships, filing status depends on state law recognition.
Combat Zone Exclusions and Benefits
One of the most significant perks for deployed service members is the exclusion of combat zone pay from gross income:
- What’s Excluded: All pay for enlisted members, warrant officers, and commissioned warrant officers in combat zones (e.g., Afghanistan, Arabian Peninsula, Sinai Peninsula). Commissioned officers can exclude up to the highest enlisted pay rate plus imminent danger pay ($10,983 per month for 2025).
- Eligibility: Service in designated combat zones, qualified hazardous duty areas, or direct support roles. Partial months count as full months.
- Election for Credits: You can elect to include nontaxable combat pay in earned income to boost eligibility for the EIC or Additional Child Tax Credit (ACTC).
- Extensions: Automatic 180-day extension (plus remaining filing time) for filing and paying taxes if serving in a combat zone or contingency operation.
This exclusion also applies to hospitalized time due to combat-related injuries.
Deductions and Credits Specific to the Armed Forces
Pub 3 highlights several deductions and credits to reduce your tax liability:
| Category | Key Details |
|---|---|
| Adjustments to Income | – Reservist travel expenses (>100 miles from home): Deduct on Schedule 1, line 12 using Form 2106. – IRA contributions: Extended deadlines for combat zone service; considered covered by employer plan. – Moving expenses for permanent change of station: Deduct unreimbursed costs on Form 3903. |
| Itemized Deductions | No 2% AGI limit for miscellaneous deductions; repayments to employers are deductible. |
| Credits | – Child Tax Credit (CTC): Up to $2,200 per child; requires valid SSN. – Credit for Other Dependents (ODC): $500 for non-CTC qualifiers. – Earned Income Credit (EIC): Income limits up to $61,555 (married, 3+ children); include nontaxable combat pay if beneficial. Investment income ≤$11,950. – Additional Child Tax Credit (ACTC): Refundable up to $1,700; refunds delayed until mid-February 2026. – Excess Social Security Tax Withheld: Claim on Schedule 3 if over $10,918.20 withheld. |
Foreign earned income rules apply, but U.S. government military pay isn’t excludable. Community property states affect married filers.
Retirement and Other Special Rules
- IRAs and TSP: Combat zone pay counts toward contribution limits. Qualified reservist distributions avoid 10% early penalty; repay within 2 years. 2025 TSP limit: $70,000 for combat zone service.
- Home Sales: Exclude up to $250,000 ($500,000 joint) gain; suspend 5-year ownership test for extended duty.
- Forgiveness for Deceased Members: Tax liability forgiven for deaths in combat zones or terrorist actions.
- Gross Income Inclusions/Exclusions: Include basic pay and bonuses; exclude BAH, BAS, death gratuity, and commissary benefits.
How to Download IRS Publication 3?
To access the full details, download the official PDF of IRS Publication 3 (2025) directly from the IRS website: https://www.irs.gov/pub/irs-pdf/p3.pdf. This 2025 edition is your go-to resource for preparing returns.
Additional Resources and Tax Help
For more support, visit the IRS’s Military Tax Information page. Free tax preparation is available through VITA, TCE, or MilTax programs. If you’re a reservist or facing unique challenges, consult Pub 3 alongside tools like TurboTax or TaxAct for military-specific guidance.
Conclusion
IRS Publication 3 empowers Armed Forces members to handle taxes confidently, highlighting benefits like combat pay exclusions and extended deadlines. By staying informed with the 2025 updates, you can avoid common pitfalls and potentially increase your refund. Remember, professional advice from a tax expert or the IRS can personalize these tips to your situation. File smart, serve strong!