What is non-taxable combat pay? Where do I find it?

posted

have you been in teh Military recently?

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

If you are an eligible military member who served in a combat zone, your income is not taxed. However, you can use it as an income source in order to receive the Earned Income Tax Credit.

A combat zone is an area where U.S. armed forces are engaging in or have engaged in combat AND the area must be designated as a combat zone by a presidential executive order.

Nontaxable combat pay will usually be shown on your W-2, Box 12 with code Q.

See

Combat Zones Approved for Tax Benefits

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