Combat Related Death Credit (code 25)
If you are filing a return on behalf of a military service member who died as a result of military service in a combat zone, you may claim a nonrefundable credit equal to the amount of the tax liability on the return attributable to the deceased service member.
To qualify for the credit, all of the following conditions must be met:
- The military service member must have been in an active or reserve component of the United States Army, Navy, Air Force, Marine Corps, or Coast Guard;
- The combat related death must have occurred on or after Jan. 1, 2010;
- The death must have occurred while the military service member was serving in a combat zone, or be the result of a wound, disease, or injury incurred while serving in a combat zone; and
- The service must have been on or after the date declared by the President of the United States by Executive Order as a combat zone, and on or before such designation is terminated by the President.
If the return is being filed by a single person (or married filing separately), the credit is equal to the tax liability shown on line 22. Enter this amount on TC-40A, Part 4, using code 25
If the return is being filed as married filing jointly (deceased service member and spouse), use the following calculation to determine the allowable credit.
|Combat Related Death Tax Credit Calculation|
|1. Adjusted gross income on the joint federal return||$|
|2. Federal adjusted gross income of deceased military member||$|
|3. Allocated percentage – divide line 2 by line 1|
|4. Amount of tax liability from TC-40, line 22||$|
|5. Combat Related Death Credit – multiply line 3 by line 4.||$|
|Enter this amount on TC-40A, Part 4, using code 25.|
Note: You may use a different method of allocating the tax liability if that method more accurately reflects the deceased service member’s tax liability.
Combat zone means an area the President of the United States designates by Executive Order in which an active component or reserve component of the United States Armed Forces are or have engaged in combat.
Military service in a combat zone means service in an active component or reserve component of the United States Armed Forces, and which service was performed:
- on or after the date the President of the United States designates by Executive Order as the date combatant activities begin in a combat zone, and
- on or before the date the President of the United State designates by Executive Order as the date combatant activities terminate in a combat zone.
Reserve component of the United States Armed Forces means service in a reserve component of the armed forces listed in 10 U.S.C. Section 101(c) or 10 U.S.C. Section 10101.