Form W-2 - E-Filing with Nontaxable Combat Pay

Nontaxable combat pay is generally reported on Form W-2 Wage and Tax Statement in Box 12 with code "Q."

See Editing in Program - Form W-2.

After entering the amount in Box 12 of the Form W-2 you received, you must indicate the combat zone:

  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 Miscellaneous Topics in the Federal Quick Q&A Topics menu to expand, then click Combat Zone.
  3. Continue with the interview process to enter all of the appropriate information.
  4. On the screen titled E-Filing - Military Service, select the area served from the Area served in 2020 drop-down for the current tax year, select the Date of deployment (combat zone only), then click Continue.

This data will then transfer to the Electronic Filing Worksheet, and will allow e-filing if the withholding is greater than 50% of the wages.

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.