CZTE
Military abbreviation · Military Term
| Stands for | Combat Zone Tax Exclusion |
|---|---|
| Categories | Military |
CZTE stands for Combat Zone Tax Exclusion, a military term abbreviation.
Federal tax benefit that excludes military pay earned in a designated combat zone or qualified hazardous duty area from income tax. Enlisted members and warrant officers exclude all such pay, while officers exclude up to a cap tied to top enlisted pay.
Example: Thanks to the CZTE, none of her pay for the seven months in Kuwait was taxed.
Usage notes
A member who serves even one day of a month in a combat zone excludes that entire month's pay. Members may still choose to count excluded pay when figuring the earned income tax credit. Reenlistment bonuses signed in a combat zone are also excluded.
Related abbreviations
More military term abbreviations
- CP – Command post
- CQ – Charge of quarters
- CQB – Close-quarters battle
- CSAR – Combat search and rescue
- CT – Counterterrorism
- CUI – Controlled unclassified information
- DA – Direct action
- DD – Dishonorable discharge
- DEERS – Defense Enrollment Eligibility Reporting System
- DEFCON – Defense readiness condition
- DEP – Delayed Entry Program
- DEROS – Date eligible for return from overseas