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
- Basic Information
- Additional Personal Information
- 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,
- Choose what Combat Zone
- 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 the information from the Department of Defense, but this designation aids in 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 specifics pertaining to what is allowed by the IRS, please refer to Extension of Deadlines - Combat Zone Service.