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Are there circumstances where active duty military stationed overseas do not pay federal taxes?
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Just any actual Combat pay while overseas isn't taxed, but whatever is in box 1 on your W-2 is subject to taxation, as-well-as any interest or dividends you might receive form any Banks or Financial accounts you may have.
Combat pay is automatically removed from your W-2 box 1 $$ amount by DFAS...so you just enter your W-2 as-is into the software.
Only enlisted ranks qualify for the free filing using any version of the TTX "Online" software, not W- or O-ranks.
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