I was in Turkey and wondering if it considered combat zone/hazardous duty. Received Hazard Duty Pay/Hostile Fire Pay $225 monthly supporting Operation Inherent Resolve.

[LeeM · Accepted solution]

First, thank you for your service.

Yes, if you received HDP/HFP, then that counts as a combat zone/hazardous duty.

TurboTax will help ensure that and your active duty pay is accounted for correctly as you continue through the interview process.

[SteamTrain]

Here's a somewhat more measured opinion:

Not all HDP is considered Combat pay...it's more a consideration of where you are when you get it  (not sure about HFP)

IF the DOD considers any of your income and HDP/HFP supplements to be included in your  COMBAT pay, they will reduce box 1 of your W-2 form by that Base pay + Supplemental income amounts that qualifies...AND there will be a box 12 entry with a Code Q and the total amount eligible for reduced taxes alongside.  

Entering your paper W-2 data into the tax software....as it is on your Paper form, takes care of all that income properly.

IF..IF..your W-2 does not have the box 1 reduced, and a box 12 Code Q and $$ alongside, then either it was not Combat pay, or you received an incorrect W-2 that you have to get cleared up with HR&Payroll and a corrected W-2 issued. Occasionally they do make mistakes.