Combat pay is not taxable .... it is already included on the W-2 in box 12 code Q and will be considered for things like the EIC automatically so there is nothing else you need to do in the program .
scook4
Returning Member
Apr 13, 2025 11:37:51 AM
How can I double check that code Q combat pay was deducted from their wages? My CX wants verification.
DoninGA
Level 15
Apr 13, 2025 11:41:33 AM
@scook4 Look at the amount in box 3 of the W-2. If box 1 is less than box 3 by the amount of the combat pay earned then it was not taxed.
scook4
Returning Member
Apr 13, 2025 12:33:40 PM
Thank you DoninGA, I thought the same thing but the figures did not match so I figured something else was added back in box 3. Thanks so much for your response.