topic Re: Active Duty Pay Deduction in Tax help for military filers

Active Duty Pay Deduction

kavebb0 — Wed, 17 Mar 2021 18:14:33 GMT

My husband served active duty for PART of 2020. The other part, he served as a "reservist" or NOT active duty. How do I figure out the ACTIVE DUTY portion when working on the Active Duty Pay Deduction?

Re: Active Duty Pay Deduction

AmyC — Wed, 17 Mar 2021 20:55:21 GMT

You would have orders that show the time period for active duty. See Solved: Active Duty Pay for more.

Re: Active Duty Pay Deduction

kavebb0 — Sat, 20 Mar 2021 16:40:14 GMT

That answer didn't really help. I have orders. I have W2. I have LES. But I don't know how to read them to get the information requested. Part of the problem is the word "deduction" - as in "Active Duty Pay Deduction." Does this mean that the entire amount he was paid while on active duty is the amount I type in the box? Not all of his active duty time was in a combat zone. I still don't know what to put in the box.

Re: Active Duty Pay Deduction

ToddL99 — Sat, 20 Mar 2021 22:46:00 GMT

Yes, the entire amount he was paid while on active duty is the amount to type in the box - those were his active duty wages.

If you have his last LES from active duty, you will see his Active Duty pay listed as "Wage YTD" (see actual LES example, below).

If all you have is a W-2 that includes active and reserve pay, you will have to find out what his gross reserve pay was after leaving A/D. His reserve unit can provide this information (if he asks the right person).

Re: Active Duty Pay Deduction

kavebb0 — Mon, 22 Mar 2021 15:23:55 GMT

Ok, we're getting closer. Not ALL of his active duty pay was in a combat zone. My understanding is the only active duty pay that is nontaxable is that which was received while he was in a combat zone. There is a huge difference between his active duty pay and active duty pay while in a combat zone.

Re: Active Duty Pay Deduction

DanaB27 — Mon, 22 Mar 2021 18:16:29 GMT

For the federal tax return only active duty pay while you were in a combat zone is nontaxable.

But the Missouri state provides a deduction for military income earned as a member of the active duty component of the Armed Forces of the United States.

This deduction is available for the amount of pay received while:

ordered to federal active duty status under 10 USC or 32 USC, or
participating in Annual Training (typically 2 weeks a year).

Therefore, for the Missouri state return all taxable pay received while considered active duty will be entered for the Active Duty Pay Deduction. You can find this as ToddL99 mentioned above.