Combat Zone Tax Exclusion for Sinai, Egypt
Effective June 9, 2015, Congress declared that the Sinai Peninsula is a qualified hazardous duty area. Members who serve in a qualified hazardous duty area and also receive hostile fire pay or imminent danger pay while performing service in that area are entitled to Combat Zone Tax Exclusion. This includes service members who were assigned permanent change of station or temporary change of station, on temporary duty, and/or mobilized to the Sinai.
If you served in this area at any time from June 9, 2015, through December 2017, please bring a copy of one of these forms of substantiating documents to your finance office:
- PCS/TCS/TDY mobilization orders,
- DD Form1351-2, Travel Voucher or sub voucher,
- and/or the Defense Travel System coucher.
Your finance office will take action to adjust your taxable wages and issue an Internal Revenue Service Form W2c Corrected Wage and Tax Statement for June 2015 through December 2017, if needed.
Traditional Thrift Savings Plan contributions may also need to be changed from tax-deferred to tax-exempt.
Starting Jan.1, 2018, if you serve in the Sinai, the CZTE will be processed with no action required by you.