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 your 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, Coast Guard or Space Force;
- 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 your 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.