Discussion:Non combat pay

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Discussion Forum Index --> Tax Questions --> Non combat pay

Maximus1 (talk|edits) said:

23 February 2006
I have a client who has combat pay. The W-2 has it in box 12 as a Q. Does anyone know if the combat pay is included in box 1. If so, do I adjust it out somehow?


DR BRISKET (talk|edits) said:

24 February 2006
Look at the W-2 form again. Add the amount in Box 1 to the code Q amount in box 12. The total should equal the taxable social security and medicare pay in boxes 3 and 5. If this is the case, the non-taxable combat pay has already been netted out for income tax tax purposes.

Jctmstx (talk|edits) said:

7 February 2007
On the W-2 I am processing box 3 and box 5 are $45.64 less than box 1. Combat pay is $1,979.36.

Jctmstx (talk|edits) said:

7 February 2007
I got the answer from Military Onesource, they do free tax returns for military. Box one does not include combat pay. Be sure to include box 12 info to avail any clients of the extra income they may need to qualify for the EIC since block one could be zero if they were in combat for more than a year.

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