No one likes deployment but there is something to be said about the extra “boost” to the pocketbook during the time your Soldier is away. The first and most obvious benefit to your finances is the absence of federal taxes. “Earnings received while in the combat zone are excluded from taxable income. This exclusion is unlimited for enlisted members and warrant officers and is limited to $7,100.10 per month in 2008 for officers. If you spend a single qualifying day in the combat zone, your pay for the entire month is excluded from taxable income,” according to the DoD’s website. Depending on what your Soldier is paid this could be several hundred dollars. Check your Leave and Earnings Statement (LES) for an exact amount.
Your Soldier may also be entitled to several other “automatic” financial benefits depending on his/her location such as:

• Family Separation Allowance (FSA) is payable at $250 per month and accrues from the day of departure from the home station and ends the day prior to arrival at the home station, in addition to any per diem or other entitlements. Servicemembers with and without dependents are eligible.
• Hostile Fire Pay (HFP). A member of a uniformed service may be paid special pay at the rate of $225 for any month in which he/she was entitled to basic pay. The monthly entitlement exists when a member receiving basic pay performs duty for any part of the month subject to HFP.
• Save Pay (SAVE on the LES) is payable at $100 per month. However, Save Pay also boasts an extra $1,000 if the servicemember has been in country longer than 12 months.

Also look into is the Servicemember's Civil Relief Act (SCRA). The SCRA provides a wide range of protections for individuals entering, called to active duty in the military, or deployed servicemembers. It is intended to postpone or suspend certain civil obligations to enable service members to devote full attention to duty and relieve stress on the family members of those deployed servicemembers.
What does that mean to you? It could mean quite a few bucks. If you acquired debt with higher than 6 percent interest (credit cards), before you were in the service, you may qualify for this reduction. Similar to the 6 percent interest rate, if you or your spouse is committed in an installment contract or auto lease and made at least one payment before active service then they’re eligible for protection from repossession and contract termination under SCRA. If you’re not sure, send the information in to the finance company.

Military.com’s benefits channel offers a great information about the SCRA benefits.

Saving can be an easy during deployments, so be sure to take advantage of all the opportunities out there. The DoD Savings Deposit Program (SDP) was established to provide members of the uniformed services, in designated combat zones, the opportunity to build their financial savings. Amounts up to $10,000 may be deposited, earning 10 percent interest annually. Members must receive Hostile Fire Pay and be deployed for at least 30 consecutive days, or one day in each of three consecutive months in order to participate in the program. You can view the DoD pamphlet here.

USAA Certified Financial Planner (CFP®) June Walbert offers this advice “Deployed servicemembers can bypass the usual $15,500 Thrift Savings Plan (TSP) contributions annual limit. While deployed, they can contribute up to a whopping $46,000. If debt is paid off, a contingency fund is built, and a Roth IRA is fully funded, socking away a substantial amount of money in the TSP would be a smart financial move.”

June also adds, “Thanks to the Hero Act of 2006, deployed servicemembers can now contribute tax-free pay to a Roth IRA. This is a wonderful opportunity that should not be passed up — tax-free pay with tax-deferred earnings withdrawn tax-free in retirement. Now that’s a sweet benefit only available to the deployed military.”

Of course, there are also great community discounts and programs that benefit deployed servicemembers and their families. Check with your local cable company, phone company, electric company, and any local retail businesses for a military discount or “deployment” discount.