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Help Center  >  Electronic Filing

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.”

To fill out Form W-2, Box 12 – Letter code and Amount, you must first add Form W-2. If you need help, go to the Form W-2 – Adding, Reviewing or Deleting FAQ. Then, follow the steps below.
  1. From within your Form W-2, continue with the interview process until you reach the screen titled W-2: Enter your information.
  2. Scroll down to the Box 12 section.
  3. Click the drop-down below Box 12 – Letter code and click Q-Nontaxable combat pay.
  4. 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 by following the steps below. This data will then be transferred to the Electronic Filing Worksheet and will allow e-filing if the withholding is greater than 50% of the wages.

Online
Dashboards
  1. From within your TaxAct return, click Taxes and Miscellaneous.
    • On smaller devices, click the menu at the top left corner of your screen, then make your selection. 
  2. Under All Uncommon Tax Items, expand the menu Other Tax Forms. 
  3. Click Add beside Combat Zone. 
  4. Select the Area served in 20YY from the drop-down menu. 
  5. Enter your Date of deployment (combat zone only) or select the date using the date picker. 
  6. Complete the rest of the interview process. 
Classic Navigation
  1. From within your TaxAct return, click Federal.
    • On smaller devices, click the menu at the top left corner of your screen, then make your selection. 
  2. Click the Miscellaneous Topics drop-down, then click Combat Zone.
  3. Click the drop-down below Area served in 20YY and click the area you served (you might need to scroll).
  4. 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.
  5. Complete the rest of the interview process. 
Desktop
  1. From within your TaxAct return, click Federal.
  2. Click the Miscellaneous Topics drop-down, then click Combat Zone.
  3. Click the drop-down below Area served in 20YY and click the area you served (you might need to scroll).
  4. Enter your Date of deployment (combat zone only) or select the date using the date picker, then click Continue.
  5. Complete the rest of the interview process.