Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Military Income

Combat Zone Exclusion

Serving in a Combat Zone

The following section is to help you understand when pay is considered excludible as combat pay. You will not be making any decisions about what is excludible. The information on the military member's Form W-2, box 12, indicates the amount of combat pay with a code Q.

If military members feel the amount is incorrect, refer them to the local accounting and finance or payroll office for clarification. Do not change any amounts from Form W-2 when inputting into tax software.

Soldiers in combat zone.