- 12 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011