U.S. Armed Forces members who served in the Sinai Peninsula of Egypt may qualify for combat zone tax benefits retroactive to June 10, 2015. (IR-2018-95; TCJA Sec 11026)

Under TCJA, members of the U.S. Army, U.S. Navy, U.S. Marines, U.S. Air Force, and U.S. Coast Guard who performed services in the Sinai Peninsula can now claim combat zone tax benefits. The bill extended the limitation on time for filing a claim for a credit or refund under Code Sec. 6511(a) to one year after the Defense Secretary provides notice to affected service members of the amount of improperly withheld taxes, and instructions for filing amended tax returns to recover the taxes.

Combat pay received on or after Jan. 1, 2018, and through 2025, will be correctly reported on any W-2 forms issued to any service member who serves in the Sinai Peninsula. Service members who served in the Sinai Peninsula in 2015, 2016, or 2017 can provide documentation of their service to their finance officer and ask for a Form W-2c, Corrected Wage and Tax Statement.