Nontaxable combat pay is generally reported on Form W-2 Wage and Tax Statement in Box 12 with code "Q."
Fill out Form W-2 in your TaxAct return, and enter your Box 12 - Letter code and Amount (if you need help, go to our Form W-2 - Entering in the TaxAct Program FAQ):
- From within your Form W-2, continue with the interview process until you reach the screen titled W-2: Enter your information.
- Scroll down to the Box 12 section. Click the dropdown below Box 12 - Letter code, and click Q-Nontaxable combat pay.
- Click the data entry field below Box 12 - Amount, and type your amount.
After entering your Box 12 - Letter code and Amount, you need to enter your military service:
- From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
- Click the Miscellaneous Topics dropdown, then click Combat Zone.
- Click the dropdown below Area served in 2022, and click the area you served (you might need to scroll).
- Click the data entry field below Date of deployment (combat zone only), and choose the date on the calendar, or type it, 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.