TN 17 (09-10)
SI 01320.200 Deeming Additional Military Pay Received by Deemors
Social Security Act, Sec. 1614 (f)(1)
1. Additional pay
Additional pay is any additional increment in pay, other than an increase in basic pay. Increases in basic pay include items such as cost-of-living allowances (COLA) and promotions.
2. Combat zone
A combat zone is any area the President of the United States designates by Executive Order as an area in which the U.S. Armed Forces are engaging or have engaged in combat. An area usually becomes a combat zone and ceases to be a combat zone on the dates the President designates by Executive Order.
Following are the currently designated combat zones:
Afghanistan Area – By Executive Order No. 13239 , Afghanistan (and airspace above) was designated as a combat zone beginning September 19, 2001.
The Kosovo Area – By Executive Order No. 13119 and Public Law 106-21 , the following locations (and airspace above) were designated as a combat zone and qualified hazardous duty area beginning March 24, 1999:
Persian Gulf Area – Executive Order 12744 designated the following locations (and airspace above) as a combat zone beginning January 17, 1991:
The Persian Gulf;
The Red Sea;
The Gulf of Oman;
The part of the Arabian Sea that is north of 10 degrees north latitude and west of 68 degrees east longitude;
The Gulf of Aden; and
The total land area of Iraq, Kuwait, Oman, Bahrain, Qatar, Saudi Arabia, and the United Arab Emirates.
Public Law 104-117 designates three parts of the former Yugoslavia (Bosnia and Herzegovina, Croatia, and Macedonia) as a Qualified Hazardous Duty Area to be treated as if it were a combat zone, beginning November 21, 1995.
In addition, the Department of Defense has certified the following locations for combat zone tax benefits due to their direct support of military operations, beginning on the listed dates:
In support of Operation Enduring Freedom (Afghanistan combat zone)
Pakistan, Tajikistan, and Jordan – September 19, 2001;
Incirlik Air Base, Turkey – September 21, 2001 through December 31, 2005;
Kyryzstan and Uzbekistan – October 1, 2001;
Philippines (only troops with orders referencing Operation Enduring Freedom) – January 9, 2002;
Yemen – April 10, 2002;
Djibouti – July 1, 2002;
Israel – January 1, 2003 through July 31, 2003; and
Somalia – January 1, 2004.
In support of Operation Iraqi Freedom (Arabian Peninsula Areas combat zone),
Turkey – January 1, 2003, through December 31, 2005;
The Mediterranean Sea east of 30 degrees east longitude –
March 19, 2003, through July 31, 2003;
Jordan – March 19, 2003; and
Egypt – March 19, 2003, through April 20, 2003.
Serving in a combat zone includes any period that a member of the military is absent from duty because of sickness, wounds, or leave. If, as a result of serving in a combat zone, a person becomes a prisoner of war or is missing in action, consider that person to be serving in the combat zone for military pay purposes as long as he or she maintains that status.
B. Policy for additional pay received by deemors
Exclude additional military pay received by a deemor for months after September 2002 from parent-to-child and spouse-to-spouse deeming computations if:
the additional pay was received by the deemor as a result of deployment to, or while serving in, a combat zone; and
the deemor was not receiving the additional pay immediately prior to serving in a combat zone.
NOTE: Do not exclude Reservist Differential Pay from income counting for Supplemental Security Income (SSI) purposes. We treat these payments as earned income. For the definition of Reservist/Military Differential Pay, see SI 00820.400B.11.
C. Procedures for additional military pay received by deemors
Request the Leave and Earnings Statements (LES) for members of the Uniformed Services. If the LESs are not available, verify pay months per SI 00830.540E.
Identify additional pay received by members of the Uniformed Services.
Exclude additional pay when determining deemed income for SSI purposes if:
the additional pay was received as a result of deployment to, or while serving in, a combat zone;
the deemor was not receiving the additional pay prior to serving in a combat zone; and
The additional pay was paid for months after September 2002.
NOTE: Do not exclude increases in basic pay (e.g., COLAs, promotions). Do not exclude additional pay received while serving in a combat zone if the deemor was already receiving it immediately prior to serving in a combat zone.
Post income amounts to the SSI record (SSR) subject to the rules of administrative finality (see SI 04070.001).
Charge additional pay (except hostile fire/imminent danger pay, as described in SI 00830.540D.3.) as unearned income for SSI purposes if:
the additional pay was received for months before October 2002, or
the income was received between October 2002 and August 31, 2008, and the deemor was not serving in a combat zone when the additional pay was received.
Charge additional pay (except on-base housing/privatized military housing allowances and hostile fire/imminent danger pay, as described in SI 00830.540D.3. and SI 00830.540D.5.) as earned income if the income was received:
After August 31, 2008, and
The deemor was not serving in a combat zone when the additional pay was received.
If the pay is not specifically excluded per SI 00820.400C.3., treat the income as earned or in-kind support and maintenance (ISM), as appropriate.
SI 00820.400, Uniformed Services – Pay and Allowances Effective on or after September 1, 2008
SI 00830.540, Uniformed Services – Pay and Allowances, Effective Before September 1, 2008