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david-womack
April 7, 2025
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Are there circumstances where active duty military stationed overseas do not pay federal taxes?

  • April 7, 2025
  • 2 replies
  • 0 views
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Best answer by SteamTrain

@david-womack 

 

Just any actual Combat pay while overseas isn't taxed, but whatever is in box 1 on your W-2 is subject to taxation, as-well-as any interest or dividends you might receive form any Banks or Financial accounts you may have.

 

Combat pay is automatically removed from your W-2 box 1 $$ amount by DFAS...so you just enter your W-2 as-is into the software.

 

Only enlisted ranks qualify for the free filing using any version of the TTX "Online" software, not W- or O-ranks.

2 replies

SharonD007
SharonD007
April 7, 2025

Yes, active duty military can get TurboTax Deluxe or Premium free.  

 

To ensure that you get the military discount, review your entries in the personal info section. 

  1. Open TurboTax
  2. Select the dropdown by My info and select Edit
  3. Select Edit under Personal profile and check your entries
  4. Make sure that you have shown your military status as of December 31, 2024?
  5. Make sure that you entered your highest military pay grade in 2024
  6. Enter an answer for combat zone or hazardous duty area you served in during 2024
  7. Select a state and select Assignment detail

On the next screen you will see the message: Yes! You qualify for our enlisted military discount.

 

Refer to the TurboTax Blog TurboTax Offers Free Tax Filing for Military Active Duty and Reserve.

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SteamTrain
SteamTrainAnswer
April 7, 2025

@david-womack 

 

Just any actual Combat pay while overseas isn't taxed, but whatever is in box 1 on your W-2 is subject to taxation, as-well-as any interest or dividends you might receive form any Banks or Financial accounts you may have.

 

Combat pay is automatically removed from your W-2 box 1 $$ amount by DFAS...so you just enter your W-2 as-is into the software.

 

Only enlisted ranks qualify for the free filing using any version of the TTX "Online" software, not W- or O-ranks.

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