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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?

 
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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.

TomD8
Level 15

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 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.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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