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As with any other year, filing federal income taxes is one of life's certainties. This is certainty no different for members of the Armed Forces.

There are some distinct tax differences, however, about which civilian practitioners should be aware, especially when dealing with family members of those Illinois reserve military personnel who are deployed or who are away from home in some activated status.

If a military member is an enlisted or a warrant officer serving in a combat zone for any part of a month, all of his or her military pay received for military service that month is excluded from gross income.

For commissioned officers, the monthly exclusion is capped at the highest enlisted pay, plus any hostile fire or imminent danger pay received.

Combat zones are designated by an executive order from the president as areas in which the U.S. Armed Forces are engaging or have engaged in combat. There are currently three such combat zones, including the airspace above each:

1. Arabian Peninsula Areas, beginning Jan. 17, 1991 - the Persian Gulf, Red Sea, Gulf of Oman, the part of the Arabian Sea north of 10 degrees north latitude and west of 68 degrees east longitude, the Gulf of Aden, and the countries of Bahrain, Iraq, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

2. Kosovo area, beginning Mar. 24, 1999 - Federal Republic of Yugoslavia (Serbia and Montenegro), Albania, the Adriatic Sea and the Ionian Sea north of the 39th Parallel.

3. Afghanistan, beginning Sept. 19, 2001.

In addition, three parts of former Yugo-slavia are designated by law as a Qualified Hazardous Duty Area, to be treated as if it were a combat zone, beginning Nov. 21, 1995 - Bosnia and Herzegovina, Croatia and Macedonia.

Furthermore, the Department of Defense certified the following locations for combat zone tax benefits due to direct support of Operation Enduring Freedom (Afghanistan combat zone):

• Pakistan, Tajikistan and Jordan - Sept. 19, 2001.

• Incirlik Air Base, Turkey - Sept. 21, 2001, through Dec. 31, 2005.

• Kyrgyzstan and Uzbekistan - Oct. 1, 2001.

• Philippines (only troops with orders referencing Operation Enduring Freedom) - Jan. 9, 2002.

• Yemen - Apr. 10, 2002.

• Djibouti - July 1, 2002.

Also these in support of Operation Iraqi Freedom (Arabian Peninsula Areas combat zone):

• Turkey - Jan. 1, 2003, through Dec. 31, 2005.

• Israel - Jan. 1 through July 31, 2003.

• The Mediterranean Sea east of 30 degrees east longitude - Mar. 19 through July 31, 2003.

• Jordan - Mar. 19, 2003.

• Egypt - Mar. 19 through Apr. 20, 2003.

Much of this information is available online from the Internal Revenue Service at www.irs.gov. The IRS also publishes an outstanding booklet, IRS Publication 3, which contains more information.

Another significant tax issue for service members and, more specifically, their family members is when to file.

In general, the deadlines for performing certain tax actions applicable to service members' taxes are extended for the periods of their service in the combat zone, plus 180 days after the last day in the combat zone. However, family members may still wish to file income taxes as usual, even though the service members are unavailable.

A power of attorney, or a signed IRS Form 2848 for an agent or spouse, is then always recommended and is sufficient to file taxes by the normal deadline of April 15.

Earned Income Tax Credit and Dependent Care Credit can also be a significant issue for those personnel who have spent time in combat zones. The EITC is a refundable credit of up to $4,200.

As a result of the Working Families Tax Relief Act of 2004, service members who have been deployed to combat zones during tax years 2004 or 2005 can elect to have their nontaxable combat pay included in the calculation of earned income solely for purposes of determining eligibility for the earned income tax credit and the dependent care credit.

Prior to the law, earned income for purposes of the earned income tax credit and child tax credit did not include income earned while in a combat zone, qualified hazardous duty area, or in direct support of a combat zone.

Because this income was excluded from the definition of earned income, many lower ranking service members could not qualify for the earned income tax credit.

Service members can also elect to include combat-excluded pay in the definition of income for the child tax credit. This election is available through tax year 2010.

It will also benefit lower ranking service members because a portion of the child tax credit is refundable in some cases.

Furthermore, a service member who is making automatic investments in an Individual Retirement Account, and does not have sufficient earned income to cover the investment, will have made an excess contribution and be subject to a fine.

Finally, a significant tax issue, especially for family members of activated reservists, is where to file.

While family members can certainly go to a local tax firm or some commercial entity to get help preparing tax returns, they also are entitled to free tax services at local military installations that provide them.

Free tax preparation and electronic filing is a benefit that more and more military installations have provided over the years as part of a service member's legal assistance entitlement.

For example, here at Fort Lewis, Wash., free tax services will be offered to all active duty service members, activated reservists, and even retirees. Services will even be offered within the Madigan Army Medical Center for staff and inpatients.

While this may not be the norm across the Department of Defense, family members in Illinois should be encouraged to contact major military installations, such as the Great Lakes Naval Training Center, (www.jag.navy.mil/html/NLSOGlakesmain.htm) or Scott Air Force Base (Base Legal Office at 618-256-2358/2359) to see about the availability of free tax preparation services and electronic filing.