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Petitioner also relies on section 134 to support his
argument that a portion of his compensation from HISD is
excludable from gross income.
Section 134(a) provides that “Gross income shall not include
any qualified military benefit.” The term “qualified military
benefit” is defined by section 134(b)(1) as:
any allowance or in-kind benefit * * * which–-
(A) is received by any member or former member of
the uniformed services of the United States * * * by
reason of such member’s status or service as a member
of such uniformed services, and
(B) was excludable from gross income on September
9, 1986, under any provision of law, regulation, or
administrative practice which was in effect on such
date (other than a provision of this title). [Emphasis
added.]
Petitioner focuses narrowly on the phrase “member or former
member” in section 134(b) to support his contention that he falls
within the exclusionary rule of section 134(a). Petitioner
reasons that the “member or former member” language was inserted
to apply to “some category of [authorized] personnel other than
active members * * * [and] there would be no other reason for
these particular benefits being mentioned if not for the tax
treatment of JROTC instructors”. We disagree.
Petitioner did not receive any “qualified military benefit”
within the meaning of section 134(b)(1). First, petitioner’s
JROTC pay did not constitute an allowance or in-kind benefit.
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