Hello, Do you know if overseas civilians deployed with the Army to Kuwait, a designated combat zone, are required to pay federal and state taxes? Any insights?
Hello, Do you know if overseas civilians deployed with the Army to Kuwait, a designated combat zone, are required to pay federal and state taxes? Any insights?
If you are employed by the US government then you are required to complete and file a federal tax return. If your state has a personal income tax then you are also required to file a state tax return.
If any of your income qualifies for the combat zone exclusion, then that will be reflected in your W-2 from DFAS. The income would not be included in Box 1 of your W-2. It would instead be reported in Box 12 with code letter Q.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.