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What is the cut off for money earn in a war zone and the time out of country? |
Have been told that if you leave the war zone before spending 330 days you will have to pay taxes on the money earn. All of the money earned in a war zone is nontaxable. Basically,if you were there for 330 days you will only be paying taxes on 1 month worth of pay. Any bonuses or anything received during that time is nontaxable. You can see how much you will have excluded by looking in box 12. The Q and amount shows this non-taxable pay. if you only spent 1 month there, then that one month is tax exempt (same thing goes for 1 day). Enjoy your hard earned cash!!! And, thanks for your service. For military members up to and including warrant officer, pay made in a combat zone is excluded from tax, no matter how long or short a time you were there. It should be broken out on your W-2 so you or a tax preparer can easily tell what can be excluded. Warning - not all preparers know how to properly handle the military exclusion, so if you have someone prepare your taxes, be sure to find someone who knows the rules. |
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