[{"data":1,"prerenderedAt":7},["ShallowReactive",2],{"faq-standard-1047":3},{"rec_id":4,"title":5,"text":6},"1047","What combat pay is eligible for a Missouri subtraction?","The IRS allows enlisted members, warrant officers, and commissioned warrant officers to exclude their military pay received while serving in a combat zone, or while hospitalized as a result of injuries incurred while serving in a combat zone. The exclusion of combat pay received by a commissioned officer (other than a commissioned warrant officer) is limited to the highest rate of enlisted pay. Subtract all military income received while serving in a combat zone, which is included in federal adjusted gross income (FAGI) and is not otherwise excluded. \r\n\u003Cbr>\u003Cbr>\r\nIn most cases, combat pay is not included in \u003Ci>Box 1, Wages\u003C/i>, of \u003Cspan style=\"white-space: nowrap;\">\u003Ci>Form W-2\u003C/i>\u003C/span> and therefore is not included in FAGI. However, if \u003Ci>Box 1\u003C/i> includes combat pay, the portion consisting of combat pay may be taken as a subtraction for Missouri purposes.\r\n\u003Cbr>\u003Cbr>\r\n\u003CB>EXAMPLE 1:\u003C/B> A resident of Missouri is an enlisted member of the military. He enters a combat zone in July and is there through December. He earns $12,000 January through June, and earns $20,000 July through December. \u003Ci>Box 1\u003C/i> of his \u003Cspan style=\"white-space: nowrap;\">\u003Ci>Form W-2\u003C/i>\u003C/span> should only indicate the $12,000 he received prior to entering the combat zone. He is not entitled to a subtraction, as his combat pay is not included in his FAGI.\r\n\u003Cbr>\u003Cbr>\r\n\u003CB>EXAMPLE 2:\u003C/B> A resident of Missouri is a high-ranking commissioned officer. He enters a combat zone in July and is there\r\nthrough December. He earns $50,000 January through June, and earns $70,000 July through December. The IRS limits his exclusion to $40,000, causing \u003Ci>Box 1\u003C/i> of his \u003Cspan style=\"white-space: nowrap;\">\u003Ci>Form W-2\u003C/i>\u003C/span> to indicate $80,000. He is entitled to a subtraction of $30,000, which represents the portion of \u003Ci>Box 1\u003C/i> of \u003Cspan style=\"white-space: nowrap;\">\u003Ci>Form W-2\u003C/i>\u003C/span> attributable to combat pay that is included in his FAGI.",1777391532640]