Federal Income Taxes

[0816]

I work for the Department of Defense.  I was transferred to Bahrain in 3/2019.  I am in the 'War Zone' or 'Hot Spot'.  Do I pay federal income taxes for income from March through the end of the year?

[MinhT1]

If you served in a designated combat zone, your income is not taxable.

Please read this IRS document for more information.

[0816]

I am not in the Armed Forces.  I work for the Dept of Defense in the Combat Zone.

[DMarkM1]

Unfortunately, at this point federal employees are not able to exclude pay earned while serving in a combat zone.  Here is the list of eligible groups.