Military Benefits: Using What You’ve Got When You’ve Got It

Written by Admin | May 5, 2025 4:00:00 AM

Your military benefits vary depending on where you are in your career, your family status, and other factors. Knowing which benefits you’re eligible to receive and understanding how to make the most of them is an important part of securing your finances for today and the future.

The Basics of Military Benefits

As a servicemember or part of a military family, it’s important to take time to understand the array of benefits available to you and your family, including:

Healthcare: Comprehensive medical coverage for you and your dependents is provided through programs such as TRICARE.
Housing: You may be eligible for housing benefits such as Basic Allowance for Housing (BAH) or access to military housing facilities.
Food: Basic Allowance for Subsistence (BAS) is an allowance intended to offset the cost of food for servicemembers and is provided at different rates for enlisted servicemembers and officers, adjusted annually.
Education: Educational assistance programs, such as the G.I. Bill, offer financial support for higher education or vocational training.
Tax benefits: Specific tax advantages are available to servicemembers, including certain exemptions and deductions.
Life insurance: Affordable life insurance options are offered to provide financial security for your family in the event of your death.

It's important to note that specific eligibility criteria and benefit details can change over time. Also be aware that eligibility criteria typically depend on your service status, length of service, and Veteran status.

Assessing Your Military Benefits at Each Stage of Your Career

Throughout your military career, you and your family will receive or have access to specific benefits and opportunities, including the following:

Early Career

Active duty servicemembers can access educational programs such as the G.I. Bill to help fund further education. If you are a new recruit or junior enlisted personnel, now is a great time to use these types of tuition assistance programs so you can focus on achieving long-term goals.

Mid-Career

Once you’ve settled into your military career, you may qualify for housing allowances, family support services, and leadership training programs. Leadership development courses can boost your career, while family support services help you maintain a work-life balance.

Transition to Civilian Life

At this stage, you’ll have access to transition assistance programs, Veterans' benefits, and employment resources. Transition workshops and resume-building services can help you prepare for civilian employment. Our Military Transition Timeline is a great place to start focusing on this change, starting three years out from separation or retirement.

Maximizing Your Military Housing Benefits

When it comes to determining where you’ll live each time you make a PCS move, think about your lifestyle and financial goals. Consider your duty location's stability, your family’s needs, and the potential value of the property. When in doubt, seek the advice of trusted financial counselors or housing specialists to help you make a decision that supports your needs, goals, and preferences.

On-base housing offers servicemembers and their families residences within military installations, with built-in communities and easy access to amenities. However, on-base availability may be limited, and housing quality can vary. Living on base also usually means giving up BAH, so it's important to weigh the pros and cons for you and your family.

For those residing off base, BAH is a non-taxable allowance designed to assist with housing costs. The amount varies based on your geographic location, pay grade, dependency status, and the local rental market conditions. BAH gives you more flexibility when choosing housing and can be applied toward homeownership expenses, including mortgage payments.

You can also leverage your BAH with VA Home Loans, which offer benefits such as no down payment requirements and more competitive interest rates. VA Home Loans are backed by the Department of Veterans Affairs (VA) and often feature other favorable terms, such as limited closing costs.

Making the Most of Military Education Benefits

Servicemembers and their families have access to a variety of educational benefits designed to support their academic and career aspirations. Let’s take a look at some of the most strategic opportunities.

Tuition Assistance (TA) and the G.I. Bill

Tuition Assistance (TA) is a benefit provided by the Department of Defense that covers tuition costs for active-duty servicemembers. Eligible individuals can receive up to 100% coverage for tuition expenses (subject to certain limits per credit hour and an annual cap). This program allows servicemembers to pursue undergraduate and graduate degrees and vocational training. Each branch of the military has specific eligibility criteria and application procedures, so consult your branch's education office for detailed information.

The G.I. Bill is a comprehensive education benefit available to Veterans, active-duty servicemembers, and their families. The Post-9/11 GI Bill offers financial support for education and housing to individuals with at least 90 days of aggregate service after September 10, 2001, or those discharged with a service-connected disability after 30 days. The G.I. Bill includes coverage for tuition and fees, a monthly housing allowance, and a stipend for books and supplies. Finally, the Forever G.I. Bill eliminated the previous 15-year time limit to use these benefits.

Education Support for Military Spouses

Servicemembers eligible for the Post-9/11 GI Bill may have the option to transfer unused educational benefits to their spouses or dependent children. This transferability feature requires the servicemember to have at least six years of service and commit to an additional four years. Transferred benefits can cover tuition, housing, and other education-related expenses.

The My Career Advancement Account program (MyCAA) provides financial assistance to eligible military spouses seeking licenses, certifications, or associate degrees for high-demand, portable careers. Eligible spouses can receive up to $4,000 in tuition assistance, with a fiscal year cap of $2,000. This program boosts career opportunities for military spouses based on their distinct circumstances and frequent relocations.

The Survivors’ and Dependents’ Educational Assistance program (DEA) provides education and training for eligible dependents of Veterans who are permanently disabled due to a service-related condition or who died while on active duty. Benefits may be used for degree and certificate programs, apprenticeships, and on-the-job training. Eligible individuals can receive up to 36 months of education benefits.

Additional Resources

For more information on additional education benefits for servicemembers and their families, use the following resources:

Yellow Ribbon Program: Helps students avoid out-of-pocket tuition and fees that may exceed the Post-9/11 GI Bill tuition benefit. This is particularly beneficial for those attending private institutions or out-of-state schools where tuition costs may be higher.
Veterans Upward Bound (VUB): A free Department of Education program designed to help Veterans refresh their academic skills before entering college through counseling, mentoring, tutoring, and academic instruction in core subject areas.
State-specific benefits: Many states offer additional educational benefits to servicemembers and their families, such as tuition waivers, scholarships, and grants.

Military Tax Benefits: What You Should Know

Servicemembers and their spouses may qualify for specific tax exemptions and deductions tailored to their circumstances. These might include:

Combat pay exclusion: Income earned while serving in designated combat zones is excluded from taxable income.
Deadline extensions: Servicemembers stationed overseas or in combat zones may receive automatic extensions for filing and paying federal taxes.
Earned Income Tax Credit (EITC): Nontaxable combat pay can be included in taxable income calculations to potentially increase EITC eligibility and benefits.
Reservist Travel Deduction: Reservists traveling over 100 miles from home for duty can deduct unreimbursed travel expenses, including meals and lodging.
State Residency Flexibility: Under the Military Spouses Residency Relief Act, spouses can maintain their original state of legal residence for tax purposes, regardless of relocation due to military orders.
Professional license portability: Recent amendments to the Servicemembers’ Civil Relief Act allow military spouses to transfer professional licenses across state lines when moving due to military orders.

Additional Tax Benefit Considerations

Death benefits: Eligible survivors of deceased servicemembers, who die while on active duty or in certain reserve statuses, receive a non-taxable death gratuity of $100,000.
Homeowners Assistance Program (HAP): HAP is designed to offset housing value declines due to base realignments or closures and is excluded from taxable income for eligible applicants.

Evaluating Your Military Benefits to Live the Life You Want

Your military benefits are there to help you maintain financial stability and enjoy a better quality of life. Make sure you stay updated on available resources and programs so you can address your immediate needs and make the most of the support systems in place. Proactive benefits management allows you and your family to receive the assistance you need when navigating the challenges associated with military life. Taking charge of your benefits also empowers you to make informed decisions about your future.