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SteamTrain
June 3, 2019
have you been in teh Military recently?
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
June 3, 2019

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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