What type of military income is referred to as active pay?

Active pay refers specifically to the compensation received by service members who are currently on active duty. This type of pay is what a military service member earns while actively engaged in their military role, such as during deployment or training exercises. It is considered ordinary income and is subject to federal taxation, similar to any other salary or wages.

Active duty pay encompasses various forms of compensation, including base pay, special pays, bonuses, and other allowances. This income reflects the individual’s ongoing commitment and responsibilities within the military.

The other types of military income mentioned, such as retirement pay, inactive reserves pay, and service-related benefits, do not fit the definition of active pay. Retirement pay is for those who have completed their service and are receiving benefits based on their time in the military. Inactive reserves pay is applicable to those in reserve status but not actively serving on duty, and service-related benefits typically refer to veterans' assistance programs or healthcare benefits rather than direct compensation for active duty work.