Alabama Military & Veteran Benefits

Description:

Military retirement pay is completely exempt from Alabama state income tax, helping you keep more of your hard-earned retirement income.

In Alabama, you are not required to pay state income tax on your military retirement pay. This includes retirement pay received for service in the Army, Navy, Air Force, Marine Corps, Coast Guard, and Space Force. This exemption applies regardless of your age or years of service.

Eligibility Requirements:

• You are a retired member of the U.S. Armed Forces (Army, Navy, Air Force, Marine Corps, Coast Guard, or Space Force).

• You receive military retirement pay.

How to Apply:

You do not need to apply for this exemption. Simply do not include your military retirement pay as income when filing your Alabama state income tax return.

Key Considerations/Things to Know:

Thrift Savings Plan (TSP) distributions are subject to Alabama state income tax. While TSP does not withhold state taxes automatically, you are responsible for reporting these distributions on your tax return.

Official Resources:

• Code of Alabama 40-18-20: http://alisondb.legislature.state.al.us/alison/code-sections/40-18-20/40-18-20.html

• Alabama Department of Revenue: https://revenue.alabama.gov/

Description:

Pay received for service in a designated combat zone is exempt from Alabama state income tax, offering financial relief during active deployment.

If you are a service member receiving pay for service in a combat zone designated by the President of the U.S., that pay is exempt from Alabama income tax.

Eligibility Requirements:

• You are a service member.

• You are receiving pay for service in a designated combat zone.

How to Apply:

You do not need to apply for this exemption. Simply do not include combat pay as income when filing your Alabama state income tax return.

Official Resources:

• Code of Alabama 40-18-3: http://alisondb.legislature.state.al.us/alison/code-sections/40-18-3/40-18-3.html

Description:

ANGEAP provides financial educational assistance to Alabama National Guard service members who are enrolled in an **Alabama State Supported School**.

Eligibility Requirements:

• 17 years of age or older

• Service member in good standing serving in the Alabama National Guard

• Completed basic training

• Pursuing first undergraduate or postgraduate degree (can only receive assistance for one degree)

• Enrolled in a certificate or degree program at an accredited community college, technical college, college, or university in Alabama

• Maintain a cumulative 2.00 GPA for undergraduate degrees, 3.00 GPA for graduate degrees at the end of each semester

• Must have the **Free Application for Federal Student Aid (FAFSA)** on file

• Must demonstrate a financial need of at least $100

How to Apply:

• ANGEAP Application: *ANGEAP-Appl-2024-2025.pdf 

Official Resources:

Military Educational Benefits - Alabama Commission on Higher Education 

The Alabama G.I. Dependent Scholarship Program provides financial assistance for eligible dependents of disabled veterans to pursue undergraduate education at Alabama schools.

This program provides scholarships to children, stepchildren, spouses, and unremarried surviving spouses of veterans who meet specific service and disability requirements. The scholarship covers a portion of tuition, fees, and textbook costs at participating Alabama colleges and universities.

Eligibility Requirements:

• Veteran Requirements:

  • You are an honorably discharged veteran with at least 90 days of continuous active duty service OR honorably discharged after less than 90 days due to a service-connected disability.

  • You have a 40% or higher service-connected disability rating from the VA OR are a former prisoner of war OR declared missing in action OR died as a result of a service-connected disability OR died in the line of duty while serving on active duty.

  • You meet one of the Alabama residency requirements [List out the specific residency options clearly from the text provided].

• Dependent Requirements:

  • You are a child, stepchild, spouse, or unremarried surviving spouse of an eligible veteran.

  • You are an Alabama resident.

  • You have completed a Free Application for Federal Student Aid (FAFSA) for each academic year.

  • You demonstrate satisfactory academic progress as defined by your education institution.

  • If you are a child or stepchild, you must start school before your 26th birthday (with some exceptions up to age 30).

How to Apply:

• Complete the ADVA Alabama G.I. Dependent Scholarship Program online application: https://va.alabama.gov/dependents-scholarship/

• Gather the required documentation, including proof of veteran's service, disability rating, residency, and your own proof of residency.

• Contact your local Alabama Department of Veterans Affairs (ADVA) Veterans Service Office for assistance: https://va.alabama.gov/service-officers/

Key Considerations/Things to Know:

Scholarships and grants must be applied to education expenses first. The Alabama G.I. Dependents Scholarship Program will cover any remaining charges. There may be age limits for children and stepchildren to receive benefits.

Official Resources:

• Alabama G.I. Dependents Scholarship Program Pamphlet: (I couldn't find a direct link to the pamphlet, but I recommend linking to a specific PDF hosted on the Alabama Department of Veterans Affairs' website.)

**Alabama State SupportedSchools** offer a waiver of tuition and fees for Purple Heart recipients who are pursuing an undergraduate degree.

Eligibility Requirements:

• To be eligible, the Veteran must be an Alabama resident, enrolled as a full time, part time, or summer school student in an undergraduate program that results in a degree or certificate and was an Alabama resident at the time they were awarded the Purple Heart.

• This waiver is only available after all other educational benefits are used, except for benefits that are partially funded by the Veteran, such as the Montgomery GI Bill or Post 9/11 GI Bill.

How to Apply:

Veterans should contact the public institution they plan to attend for more information.

Official Resources:

• Learn more about Alabama Tuition Waiver for Purple Heart Medal Recipients: (I couldn't find a specific landing page about this, you may need to link directly to the website of the Alabama Comission on Higher Education)

Alabama Operation Recognition, High School Diplomas for Wartime Veterans

Veterans who left high school before graduating to serve in the U.S. Armed Forces can receive high school diplomas.

Eligibility Requirements:

• Veterans must have served at any time between the following dates:

  • December 7, 1941, through January 1, 1946

  • June 27, 1950, through January 31, 1955

  • November 15, 1961, through March 28, 1973

• Veterans must have been a resident of Alabama when they entered the U.S. Armed Forces and must have received an honorable discharge.

How to Apply:

Veterans or their family members can apply by contacting the high school principal's office of the Veteran's former high school, or the County Superintendent of Education.

• Alabama Department of Education School Directory: https://www.alsde.edu/schools/

Official Resources:

• Alabama Code 16-1-37: http://alisondb.legislature.state.al.us/alison/code-sections/16-1-37/16-1-37.html

The Alabama Department of Labor offers personalized employment assistance to Veterans.

For more information, please contact the nearest **Alabama Career Center**.

Official Resources:

• Alabama Department of Labor, Veteran Employment, Training and Services Flyer: (I couldn't find a link to it, I recommend contacting the Alabama Department of Labor about this and if its available)

• Learn more about the Alabama Department of Labor Veteran Employment, Training and Services: https://labor.alabama.gov/vosnet/veterans.aspx

Alabama State Employee Leave of Absence for Military Service

State employees who are service members serving in a reserve component of the U.S. Armed Forces can receive 168 working hours paid leave per calendar year for military service.

Official Resources:

• Learn more about Alabama State Employee Leave of Absence for Military Service: (I couldn't find a link to it, it would require some deeper digging into the official state documents of Alabama)

Alabama offers state employment hiring preference to eligible Veterans, disabled Veterans, spouses and surviving spouses. Preference is given by adding points to passing examination scores when applying for state employment.

Official Resources:

• Learn more about Alabama State Employee Veterans’ Hiring Preference: (I couldn't find a link to it, it would require some deeper digging into the official state documents of Alabama)

Private employers are authorized to have a written Veterans hiring preference policy.

Official Resources:

• Learn more about Alabama Private Employment Veterans’ Preference: (I couldn't find a link to it, it would require some deeper digging into the official state documents of Alabama)

Federal Employment Veteran's Hiring Preferences

By Federal law, Veterans who are disabled or who served on active duty in the U.S. Armed Forces during certain specified time periods or in military campaigns are entitled to preference over non-Veterans in hiring into the Federal civil service and in retention during reduction in force.

Official Resources:

• Learn more about Federal Employment Veteran's Hiring Preferences: https://www.opm.gov/policy-data-oversight/veterans-services/vet-guide-for-hr-professionals/

Retirement System of Alabama (RSA) Benefits for Service Members

State employees and teachers who enter the U.S. Armed Forces and return to state employment can keep their RSA benefits and may receive credit for up to four years of military service.

Official Resources:

• Learn more about Retirement System of Alabama Benefits for Service Members: (I couldn't find a link to it, it would require some deeper digging into the official state documents of Alabama)

Alabama Peace Officers Credit for Military Service

Any peace officer who is a member of the Alabama Peace Officers’ Annuity and Benefit Fund, who enters the U.S. Armed Forces and returns to work as a peace officer within six months after discharge can receive service credit for their military service for up to five years.

Official Resources:

• Learn more about Alabama Peace Officers Credit for Military Service: (I couldn't find a link to it, it would require some deeper digging into the official state documents of Alabama)

Alabama Reduced Cost Business and Occupational Licenses for Disabled Veterans

Eligible disabled Veterans are charged a reduced fee of $25 for state/county/municipal business or occupational license taxes.

Official Resources:

• Learn more Alabama Business and Occupational License Exemptions for Disabled Veterans: (I couldn't find a link to it, it would require some deeper digging into the official state documents of Alabama)

USERRA protects civilian job rights and benefits for Veterans and members of reserve components.

Official Resources:

• Learn more about Uniformed Services Employment and Reemployment Rights Act: https://www.dol.gov/agencies/vets/programs/userra

Alabama Hilton Honors Military Program

The Alabama Hilton Honors Military Program helps make the career transition from service in the U.S. Armed Forces to civilian employment easier for current and former service members.

Official Resources:

• Learn more about the Alabama Hilton Honors Military Program: (Finding this directly, may require contacting the Alabama Deparment of Labor)

SSLI offered through the National Guard Association to Alabama National Guard service members is made up of several voluntary group life policies that are designed to help meet the needs of National Guard service members and their families. Every member of the Alabama National Guard is covered with $1,000 SSLI at no cost to the service member.

SSLI can be purchased for up to $50,000 for service members, $25,000 for their spouse, and $10,000 for children.

Key Benefits of SSLI:

• Benefit payable in event of death from any cause

• Coverage twenty-four hours a day, 365 days a year

• No war clause or aviation exclusion

• No hazardous duty or civilian occupation restrictions

• Full conversion option after separation from the Alabama National Guard

Who is eligible for SSLI for Alabama National Guard Service Members? Alabama National Guard service members and their dependents are eligible SSLI.

• Alabama National Guard SSLI Application - (Finding a link for a application, It was hard to locate. Contacting Alabama National Guard will likely be helpful for its location)

Learn more about State Sponsored Life Insurance for Alabama National Guard Service Members - https://www.ngat.org/ssli

The VA provides valuable life insurance benefits to Veterans, active and reserve component service members and their families to provide financial security given the extraordinary risks involved in military Service. The VA provides the following life insurance benefit programs:

• Servicemembers’ Group Life Insurance (SGLI )

• Veterans’ Group Life Insurance (VGLI )

• Family Servicemembers’ Group Life Insurance (FSGLI )

• Servicemembers' Group Life Insurance Traumatic Injury Protection Program (TSGLI )

• Service-Disabled Veterans’ Life Insurance (S-DVI )

• Veterans’ Mortgage Life Insurance (VMLI )

Learn more about U.S. Department of Veterans Affairs Life Insurance - https://www.va.gov/life-insurance/

TRICARE Reserve Select is a premium-based plan, available worldwide for Selected Reserve, (U.S. Armed Forces Reserve and National Guard service members) and their families who meet the following qualifications:

• Not on active duty orders

• Not covered under the Transitional Assistance Management Program

• Not eligible for or enrolled in the Federal Employees Health Benefits (FEHB) program or currently covered under FEHB, either under their own eligibility or through a family member.

This plan provides comprehensive health care coverage when a service member is not on active duty and covered by active duty TRICARE benefits.

Learn more about TRICARE Reserve Select Health Insurance - https://www.tricare.mil/Plans/HealthPlans/TRS

Alabama National Guard service members injured in the line of duty while serving on state active duty are eligible to receive compensation under the Employee Injury Compensation Trust Fund.

Who is eligible for Compensation for Alabama National Guard Service Members Injured on State Active Duty? Alabama National Guard service members who are injured while serving on state active are eligible for compensation.

Learn more about Compensation for Alabama National Guard Service Members Injured on State Active Duty - (This will require a deep dive into the state regulations, contacting them about this regulation will be helpful)

Compensation for Alabama National Guard Service Member Killed While on State Active Duty: Alabama pays a $100,000 death benefit to the survivors of an Alabama National Guard service member killed while serving on state active duty.

This benefit is extended for three years if the service member dies from causes related to their state active duty. This death benefit is not provided for service members who died while serving on federal active duty.

Learn more about Compensation for Alabama National Guard Service Member Killed in Performance of their Duties - (This will require a deep dive into the state regulations, contacting them about this regulation will be helpful)