Compensation and bonuses received for active service in the Armed Forces of the United States during the following periods.

(1) Compensation received for active service in the Armed Forces of the United States on or after October 1, 1961 and prior to September 1, 1962, provided that the amount of such compensation does not exceed $100 for each month of the taxable year during any part of which the taxpayer was engaged in such service. For purposes of this subdivision, the words active service in the Armed Forces of the United States mean active duty (other than for training) in the Army, Navy (including the Marine Corps), Air Force or Coast Guard of the United States, as defined in title 10 of the United States Code. (See section 612[c][8] of the Tax Law.) This modification was allowable only for the years 1961 and 1962 with respect to the calendar months indicated herein on the basis of claims made on a New York State income tax resident return, accompanied by form IT-201-MS, Statement of Military Pay Exemption.

(2) Compensation and bonuses received for active service in the Armed Forces of the United States while a prisoner of war or missing in action during the hostilities in Vietnam, to the extent includible in gross income for Federal income tax purposes. A claim for credit or refund of New York State personal income taxes attributable to the provisions of this paragraph may be filed within two years from the time such member of the Armed Forces returns to the United States. (See section 612[c][8-a] of the Tax Law.)