A new bill looks to exempt National Guard and Reserve drill pay from federal taxes

A new bill seeks to exempt National Guard and Reserve drill pay from federal income taxes. The No Tax on Drill Pay Act would eliminate taxes on income earned during Inactive Duty Training, which typically includes monthly drill weekends and other readiness training throughout the year. Congressman Andy Barr, who introduced the bill, said eliminating federal taxes on drill pay would reward the more than 800,000 Americans who serve in the Guard and Reserve. The bill follows several recent proposals aimed at making certain military pay tax-free. Last year, a group of lawmakers introduced legislation to exempt all military bonuses from federal income tax, while another proposal is seeking to fully exempt military compensation from federal income tax. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.