Can U.S. Department of State officers (civilians) claim a combat zone tax benefit for serving a year in Iraq? If so, where is that entered in TurboTax?

[ColeenD3]

Yes. Please see this LINK for more information.

These items offer guidance on the tax relief provided for U.S. military and support personnel involved in military operations in a combat zone. 

Civilian taxpayers covered by the relief provisions described here should put the words "COMBAT ZONE" and their deployment date in red at the top of their tax returns. Members of the military do not need to write "COMBAT ZONE" and their deployment date on the tops of their tax returns because the U.S. Department of Defense informs the IRS about members in the combat zone.

Covered civilian taxpayers who receive a notice from the IRS regarding a collection or examination matter should return the notice to the IRS with the words "COMBAT ZONE" and the deployment date in red at the top of the notice and put "COMBAT ZONE" on the envelope so the IRS can suspend the action. Taxpayers may prevent issuance of such notices by notifying the IRS that they are working in a combat zone.

• Combat Zones (Q & A-1)
   
• Military Pay Exclusion (Qs & As 2-10)
   
• Extension of Deadlines (Qs & As 11-31)
   
• Miscellaneous Provisions (Qs & As 32-35)
   
• Employers with Employees in a Combat Zone (