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Code "Q" is nontaxable combat pay. In TaxAct®, this is entered in Box 12 of Form W-2 Wage and Tax Statement.

To enter military wages reported on a W-2:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Wages and Salaries in the Federal Quick Q&A Topics menu to expand, then click Wage income reported on Form W-2.
  3. Click + Add Form W-2 to create a new copy of the form or click Edit to review a form already created.
  4. On the screen titled W-2: Enter Taxpayer's/Spouse's information, select "Q-Nontaxable combat pay" from the Box 12 - Letter code drop-down, enter the Box 12 - Amount amount, then click Continue.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


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