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June 5, 2019
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How do you account for civilian pay while deployed in a combat zone. My husband is a reservist. He was activated for a few months and his civilian employer also paid him. Those months should also be t

  • June 5, 2019
  • 1 reply
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Best answer by ToddL

Only his military pay qualifies for the combat zone exclusion. 

Any civilian pay he received while in a combat zone is taxable. It should be reported on a Form W-2 and entered in the Form W-2 interview.

Combat Zone Tax Exclusions

Enlisted personnel, warrant officers, and commissioned warrant officers can exclude the following from their income:

  • Active duty pay earned in any month you served in a combat zone
  • Imminent danger/hostile fire pay
  • A reenlistment bonus if you reenlisted in a month you served in a combat zone
  • Pay for selling back leave in any month you served in a combat zone

1 reply

ToddLAnswer
June 5, 2019

Only his military pay qualifies for the combat zone exclusion. 

Any civilian pay he received while in a combat zone is taxable. It should be reported on a Form W-2 and entered in the Form W-2 interview.

Combat Zone Tax Exclusions

Enlisted personnel, warrant officers, and commissioned warrant officers can exclude the following from their income:

  • Active duty pay earned in any month you served in a combat zone
  • Imminent danger/hostile fire pay
  • A reenlistment bonus if you reenlisted in a month you served in a combat zone
  • Pay for selling back leave in any month you served in a combat zone