Question

What is considered 'Federally Taxable Combat Pay'? The question in tubro tax asked me to exclude the 'Q' portion on my W2 (non taxable combat pay).

Forum|Forum|5 years ago
April 14, 2020
1 reply
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I have read that 'Hazard Pay' may be taxable but I wanted to make sure.

TurboTax Premier Online

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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