Before MFTRA, qualified military benefits were not included in gross income.
MFTRA extended the exclusion from gross income to any adjustment to the amount of the death gratuity payable under Chapter 75 of Title 10 of the United States Code that is pursuant to a provision of law enacted after September 9, 1986, with respect to the death of certain members of the armed services on active duty, inactive duty training, or engaged in authorized travel--effectively increasing the current amount of the exclusion to $12,000.
Effective for payments made after November 11, 2003, the MFTRA generally exempts from gross income any amounts received under HAP.
Prior to MFTRA, National Guard and Reserve members could claim itemized deductions for their nonreimbursable expenses for transportation, meals, and lodging when they traveled away from home (and stayed overnight) to attend National Guard or Reserve meetings.
The MFTRA included a number of other provisions that afford tax benefits to military personnel and their families; see the exhibit on p.
Dependent care assistance: MFTRA Section 106 clarified that payments made to members of the Armed Forces under dependent care assistance programs are deemed qualified military benefits under Sec.
According to MFTRA Section 107(b), this provision is effective for tax years beginning after 2002.