What are the tax benefits for military members serving in a combat zone?

If you served in a combat zone during the current tax year, you face special tax situations and are entitled to some special tax benefits.

You can mark your return as having served in a Combat Zone by going to:

1. Basic Information
2. Choose Personal Information > Additional Personal Information
3. You will check the box that states, " Check here if the Taxpayer or Spouse served in a Combat Zone during the current tax year". Once this box has been checked,
4. Choose what Combat Zone
5. Enter your dates of service in the Combat Zone. If you served more than one period of time in a combat zone, enter the latest, or most current dates 

The IRS receives information from the Department of Defense, but this designation helps facilitate the processing of your refund. The actual combat zone and date do not affect the calculation of your return, only the amount of the combat pay reported on Form W-2, box 12, Code Q.

Also, military members serving in a Combat Zone receive special "Extension of Deadlines" for filing their tax return(s) as well as paying taxes that may be owed.

For specific details about what is permitted by the IRS, please take a look at the Extension of Deadlines - Combat Zone Service.