What is considered non taxable combat pay?
Combat Pay You do not have to report nontaxable pay you receive as a member of the Armed Forces as earned income for purposes of the EITC.
Examples of nontaxable military pay are combat pay, the Basic Allowance for Housing (BAH), and the Basic Allowance for Subsistence (BAS)..
How does combat pay affect taxes?
Generally, any form of military pay earned while on deployment in a combat zone is excluded from federal income tax. … Any form of pay earned while on deployment in a combat zone is excluded from federal income tax.
Is combat pay taxed?
Enlisted persons and warrant officers— Combat pay is nontaxable, and you should report zero for combat pay or special combat pay. Commissioned officers—Combat pay in excess of the highest enlisted person’s pay (plus imminent danger/hostile fire pay) is taxable.
How do you calculate combat pay?
It should also be included in the earned income figures reported on the FAFSA. The amount of combat pay is listed in Box 12 (Q) of the W-2 statement. Other types of untaxed income received by military personnel that should be reported on Worksheet B include housing allowance (BAQ) and subsistence allowance (BAS).
Where can I find combat pay?
The combat pay is not taxable, but it’s shown on your husband’s W-2, here in box 12, with Code Q.
Does everyone have combat pay?
Combat pay is not open only to combat soldiers. Any person enrolled in a branch of the U.S. military who is assigned to a designated hazardous area is eligible to receive combat pay. Spending as little as one hour on duty in a hazardous zone qualifies for an entire month’s combat pay.
What qualifies as a combat zone?
A combat zone is any area the President designates by Executive Order as an area in which the U.S. Armed Forces are engaging or have engaged in combat. An area usually becomes a combat zone and ceases to be a combat zone on the dates the President designates by Executive Order.
Do US military pay taxes?
Taxes, taxes, taxes In the military, the federal government generally only taxes base pay, and many states waive income taxes. … You may be subject to federal, state and local income tax (though some states and localities charge none), Social Security tax and Medicare tax.
How much would an e4 make on deployment?
Special Pays for Deployed Soldiers Hazardous duty pay, as of 2018, is $150 per month. Hostile fire or imminent danger pay is $225 per month. Enlisted soldiers qualify for $340 per month in diving pay, and an E-4 earns up to $308 per month for sea duty.