Page 132
132 | P a g e October 25 APPENDIX D Combat Zones A combat zone is any area the President of the United States designates by Executive Order as an area in which the U.S. Armed Forces are engaging or have engaged in combat. An area usually becomes a combat zone and ceases to be a combat zone on the dates the President designates by Executive Order. Combat Zone Tax Exclusions If you are a member of the U.S. Armed Forces who serves in a combat zone (defined below), you can exclude certain pay from your income when determining your taxes. Hostile Fire Pay (HFP) and Imminent Danger Pay (IDP) is referred to as “Combat Pay”. It is payable at a monthly rate of $225. It is payable in addition to all other pays or allowances. It is payable in the full amount without being prorated or reduced, for each month, during any part of which a member qualifies.