The 2004 W-2 tax forms for service members will now report pay earned while serving in a combat
zone tax exclusion area. This information helps determine eligibility for the earned income tax
credit and child tax credit. The combat pay information will be listed separately in Block 14 of
the W-2 and will not be included with taxable wage information in Block 1. Tax credit
qualifications are based on gross income, which includes pay earned while in a combat zone. The
addition of this information on 2004 W-2s will aid not only in determining whether a service
member meets the Internal Revenue Service requirements for tax credit, but also which method of
computing taxes is most advantageous to each situation. The 2004 W-2s will be available mid- to
late-January. Visit my Pay online at
target=”_blank”>mypay.dfas.mil
