Credit for Military Service in a Combat Zone

 
For other tax-related issues that affect service members, see Fact Sheet 5 - Military - Residency or Fact Sheet 5a - Military - Subtractions, Credits, and Extensions.

You may qualify if all of the following are true:

• You were a Minnesota resident.
• You served in a combat zone or qualified hazardous duty area.
• You received combat pay, which is excluded from federal gross income under Internal Revenue Code, section 112.

The credit is based on the number of months you served. Partial months count as full months.

For more information about combat zones and qualifying hazardous duty areas:

• See Combat Zones Approved for Tax Benefits on the Internal Revenue Service website.
• See IRS Publication 3, Armed Forces’ Tax Guide.

Complete Form M99, Credit for Military Service in a Combat Zone, for the year you served. You file Form M99 separately from your income tax return. To receive this credit, you must:

• File Form M99 within 3½ years from the original due date of your income tax return
• Include documentation, as described below, with your form.

To complete Form M99 for a previous year, see Find a Form.

You have 3½ years from the original due date of your tax return to claim the credit. The credit for months served in a combat zone from January 1, 2016 to December 31, 2016 will expire October 15, 2020.

Individual circumstances may exist that extend the time allowed to file for these credits. If you spent additional days in a combat zone after the due date, you can add the number of additional days plus 180 days to the initial 3½ years.

Example

If you served in a combat zone in 2015, you had to file your 2015 Form M99 by October 15, 2019. However, starting on June 1, 2016, you spent 60 days in a combat zone. You would have an additional 240 days to claim the credit (60 days plus 180 days). Therefore, you would have until June 10, 2020 (240 days after October 15, 2019) to file 2015 Form M99.

You need the following documentation:

• National Guard, Reservists, and retired or discharged active-duty members: For each period of qualifying service, attach a copy of your Form DD-214, Certificate of Release or Discharge from Active Duty.
• Active-duty members: For each month in qualifying status, attach a copy of your Leave and Earnings Statement.

You may order copies of the necessary records, as outlined below. You should request the required documentation as soon as possible to avoid delays when filing for the credit.

• National Guard and Reserve members may request copies of their DD-214s from the Official Personnel File (OPF) maintained in their unit.
• Inactive Reserve, retired, and discharged military members may order copies of their DD-214s through The National Archives. Start Your Military Service Record Request on the Archives website.
• Active-duty military members (who did not receive a DD-214 for their duty in combat status) must submit a copy of their Leave and Earnings Statement for each month in a combat zone or qualified hazardous duty area. Go to the military MyPay website to access copies of your statements.

If you cannot get your Leave and Earnings Statements through MyPay, request assistance by calling the appropriate phone number below: