Lawmakers Propose Tax-Free Military Bonuses

Lawmakers propose tax-free military bonuses

Military bonuses earned by service members for enlisting, reenlisting or excelling in their duties would be exempt from federal taxes under a new bill, dubbed the BONUS Act, introduced in the House and Senate.

New bill seeks to exempt all military bonuses from federal taxes

A bipartisan group of lawmakers is pushing to exempt all military bonuses from federal income tax — a move that would allow service members to keep their full bonus pay.  The legislation, dubbed as the BONUS act, seeks to amend a section of the Internal Revenue Code of 1986 to “explicitly exclude any bonus paid to a member of the uniformed services.” If passed, the bill would apply to military bonuses earned after December 31, 2024. Currently, s…