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How do you report income from deployment

CPAonzgo
Level 1

Taxpayer earned income from deployment.  How do I let lacerte know this is not taxable?

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2 Comments 2
sjrcpa
Level 15

Why isn't it taxable?

The military would exclude exempt combat pay from the W-2.

Is this a state thing?


Ex-AllStar
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CPAonzgo
Level 1

I resolved the issue.  This is taxable income.  However, combat pay is not taxable.