@jdrob 

"I am a contractor working part of the year overseas and much of it in a combat zone"

Are you using ProSeries for preparing clients' tax returns?

If so, I would advise you to start a new topic and explain only the details that pertain to your taxpayer client. This specific topic was for a person who was not an employee, so the letter given to them, while working Stateside, didn't even apply to their payments (which were not wages).

And I don't see where you asked the specific question you are looking for help with. But, if you read this topic carefully, perhaps it will clarify your issue. Focus on Combat Pay vs Combat Zone, because only military gets combat PAY. Combat Zone includes "in support of" military that is not deployed.