Tax Break
President Bush officially designated the Persian Gulf area and surrounding waters a COMBAT ZONE on Monday, a move that gives the armed forces serving there a break on their federal INCOME TAXES. Enlisted personnel will not have to pay taxes on any of their military pay while serving in the combat zone. For officers, the first $500 a month is tax free.
Soldiers in the gulf will also have at least 180 DAYS after they depart from the gulf to file their 1040s. The order is retroactive to Jan. 17, when the United States launched Operation Desert Storm to drive Iraq out of Kuwait.
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