Armed Forces Combat Pay
Menu Path: Income > Common Income > Wages (W-2)
Enter on the Wages (Form W-2) screen.
Nontaxable combat pay should be shown in Box 12 of your W-2 with Code Q next to it. In Box 12, enter the letter Q in the code box, and enter the nontaxable combat pay in the amount box. If you are eligible for the Earned Income Credit or the Additional Child Tax Credit, our software will automatically use the nontaxable combat pay if it increases either one of those credits. If it doesn't increase those credits, it will not be used.
Enter on the Wages (Form W-2) screen.
Nontaxable combat pay should be shown in Box 12 of your W-2 with Code Q next to it. In Box 12, enter the letter Q in the code box, and enter the nontaxable combat pay in the amount box. If you are eligible for the Earned Income Credit or the Additional Child Tax Credit, our software will automatically use the nontaxable combat pay if it increases either one of those credits. If it doesn't increase those credits, it will not be used.
