Hello, Do you know if overseas civilians deployed with the Army to Kuwait, a designated combat zone, are required to pay federal and state taxes? Any insights?

If you are employed by the US government then you are required to complete and file a federal tax return.  If your state has a personal income tax then you are also required to file a state tax return.

If any of your income qualifies for the combat zone exclusion, then that will be reflected in your W-2 from DFAS.  The income would not be included in Box 1 of your W-2.  It would instead be reported in Box 12 with code letter Q.