Theodore Paul Manno has published Federal Income Taxation of Soldiers, Sailors, Airmen and Marines, 50 S.D. L. Rev. 293 (2005).  Here is the Conclusion:

[T]he aim of this article [is] to combine in one place . . . the most salient changes made by MFTRA, SCRA, and WFTRA in the context of discussing the overall federal income taxation of military personnel.  These changes have increased payments to those who make the ultimate sacrifice for our nation, have created or enhanced income tax exclusions with respect to that death benefit, homeowners assistance payments, dependent care assistance programs, and sales of homes, and have alleviated the financial burden of overnight travel expenses for National Guard and Reserve members. Together, this trilogy of statutes has also expanded relief from filing, and in some cases, even from payment requirements for fighting men and women; has ameliorated technical drawbacks with respect to federal tax credits, and the imposition of state income taxes on spouses; and has aided veterans groups and service academy appointees. These developments, the other changes wrought by these statutes, and other tax topics of key importance to those who answer the call to arms, have been the focus of this article. It is hoped that the specialist and the general practitioner alike will find it both a depository of information and analysis, and a source of references for further research and reading.