September 2023 | By Joel Goodsell, and John Seery, KPMG LLP in the United States
For many organizations, fostering an inclusive and supportive work environment for current and former military servicemembers and their families is critical to their Diversity, Equity, and Inclusion (DEI) strategy.1 However, retaining and developing this subset of talent requires an appreciation for the unique challenges placed on servicemembers and their families.
The reality for many military families is that, at a moment’s notice, they may need to uproot their lives in service of (or in support of those who serve) the United States. On average, military families move ten times more often than civilian families.2 In addition to the normal burdens associated with an employee relocation, servicemembers and their families must navigate a complex set of tax rules unique to military personnel and their families.
This article provides an overview of the body of U.S. tax law developed to protect military personnel and their families from being subject to taxation in multiple jurisdictions due to military service and examines how mobility departments are well positioned to support an organization’s efforts in attracting and retaining top talent from the military family community. This article’s focus is U.S. domestic state-to-state change-of-station relocations, and does not address trailing spouse considerations with respect to international change-of-station relocations.
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