By Capt. Andrew R. Cerchio, 7th Army Training Command Tax CenterMarch 5, 2018
Soldiers serving in a designated combat zone are eligible to exempt military pay from their taxable income.
In December 2018, Congress declared the Sinai Peninsula a combat zone for tax purposes effective June 9, 2015.
The reduction in taxable income may result in a higher refund.
Soldiers who served in the Sinai Peninsula during any time after June 9, 2015, can take advantage of this development by getting a corrected W-2 and file an amended return with the IRS.
Active Component Soldiers who were assigned temporary change of station (TCS) or temporary duty (TDY) during any period from June 2015 through December 31, 2016, should submit a copy of their TDY/mobilized orders and a completed travel voucher (DD Form 1351-2 or DTS Voucher) to the finance office for review.
The finance office will process the case and forward to the DFAS Tax Team for the corrected W-2.
Soldiers who have either retired or separated from service will be contacted by DFAS with instructions on how to obtain a corrected W-2.
Upon receipt of a corrected W-2, taxpayers can file amended returns with the IRS. Amended tax returns cannot be e-filed and must be mailed in to the IRS.
More information on how to file an amended return can be found at your local tax center or www.irs.gov.