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It seems like the software is not deducting my combat zone pay from my total income even though box 12 code Q is entered. Anyone else have this issue or know how to fix?

I've gone back and forth a couple times, removing and re-entering the amount of combat pay in box 12, but my tax due does not change. This makes me think that the program is saying that I owe taxes on the combat pay.
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1 Reply
DanaB27
Expert Alumni

It seems like the software is not deducting my combat zone pay from my total income even though box 12 code Q is entered. Anyone else have this issue or know how to fix?

Please be aware that the combat pay in box 12 is already excluded from box 1 of your W-2, therefore if you only change the entry in box 12 it won't change your income. 

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