Code Q is nontaxable combat pay. In TaxAct®, this is entered in box 12 of the W-2.
To enter military wages reported on a W-2:
- From within your TaxAct return (Online or Desktop) click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
- Click Wages and Salaries in the Federal Quick Q&A Topics menu to expand the section and then click Wage income reported on W-2
- Click +Add Form W-2 to create a new copy of the form or click Review to review a form already created
- Enter the Employer's information and click Continue
- Continue to the screen titled W-2: Enter your employer's information. In the Box 12 - Letter code field, select Q-Nontaxable combat pay from the drop-down menu and enter the amount reported.