What type of deductions are included when determining service member earnings?

Determining service member earnings encompasses various types of deductions that impact their take-home pay. The correct choice highlights that both taxes and Thrift Savings Plan contributions are significant components of these deductions.

Taxes are mandated withholdings that include federal income tax, state income tax (if applicable), and Social Security and Medicare taxes. These deductions are essential as they are required by law and play a critical role in funding government services and programs.

On the other hand, contributions to the Thrift Savings Plan (TSP) are important because they represent a portion of a service member’s earnings that they choose to save for retirement. These contributions often come from pre-tax income, which lowers the individual's taxable income for the year.

By including both taxes and TSP contributions in the calculations for service member earnings, a comprehensive view of what affects the net pay is provided, ensuring that service members are fully aware of how these deductions impact their overall compensation. This understanding is vital for effective personal financial planning and management for military personnel.