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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.

There's a special rule with the EIC for nontaxable combat pay - you can elect to include it or exclude it for the EIC calculation, whichever benefits you, if you're eligible for EIC.

Good luck, and thanks for being there......

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