Military Combat Zone Pay Exclusion in Lincoln, NE 2026
Calculate your military combat zone pay exclusion tax savings in Lincoln, Nebraska. With Nebraska's 5.84% state tax rate, your combined savings are higher.
Nebraska Tax Context
State capital; University of Nebraska
Military Combat Zone Pay Exclusion Savings Calculator for Lincoln
Federal Savings
$1,100
22% bracket
Nebraska State
$292
5.84% rate
Local Tax
$0
0% rate
Total Savings
$1,392
27.8% combined
At a 27.8% combined tax rate in Lincoln, every $1,000 in deductions saves you $278 in taxes.
Savings by Tax Bracket in Lincoln
Includes 5.84% Nebraska state tax on top of federal savings.
Eligibility Requirements
Military personnel serving in designated combat zones
- 1Must serve in a combat zone designated by Executive Order
- 2Enlisted members: all compensation is tax-free
- 3Officers: exclusion capped at highest enlisted pay plus hostile fire pay
Nebraska residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 5.84%.
Common Mistakes to Avoid
- !Not extending filing deadlines for combat zone service
- !Forgetting that combat zone extends to qualifying hazardous duty areas
- !Missing the option to include combat pay for EITC calculation
- !Forgetting to claim the deduction on your Nebraska state return (missing 5.84% additional savings)
Required Tax Forms
File these forms with your federal tax return to claim the military combat zone pay exclusion. Nebraska may require additional state-specific forms.
Other Tax Deductions in Lincoln, NE
Tax Preparation Fees Deduction
Other
AMT Credit Carryforward
Other
Hobby Loss Rules & Deductions
Other
Federally Declared Disaster Loss
Other
Professional Gambler Business Deduction
Other
Innocent Spouse Relief
Other
Estimated Tax Penalty Waiver
Other
Mortgage Interest Deduction
Housing
Military Combat Zone Pay Exclusion in Other Nebraska Cities
Calculate Your Full Tax Savings in Lincoln
Use our free tax calculators to optimize your entire tax return for Nebraska.
Frequently Asked Questions
How much can I save with the Military Combat Zone Pay Exclusion in Lincoln, NE?
In Lincoln, Nebraska, the military combat zone pay exclusion can save you an estimated $1,392 per year. This includes $1,100 in federal tax savings and $292 in Nebraska state tax savings. The national average savings is $8,000/year.
What is the Nebraska state income tax rate for Lincoln residents?
Nebraska has a 5.84% state income tax rate. Lincoln residents have no additional local income tax. State capital; University of Nebraska
Who qualifies for the Military Combat Zone Pay Exclusion in Lincoln?
Military personnel serving in designated combat zones. The eligibility requirements are the same whether you live in Lincoln or elsewhere in the U.S., as this is a federal tax deduction. However, your savings amount will vary based on Nebraska's 5.84% state tax rate.
What tax forms do I need to claim the Military Combat Zone Pay Exclusion in Nebraska?
To claim the military combat zone pay exclusion, you need to file Form W-2 and Form 1040 with your federal return. Nebraska residents should also check if the state allows this deduction on their state return, which could provide an additional 5.84% savings. Filing status affects your deduction limits and tax bracket.
Is the Military Combat Zone Pay Exclusion better in Lincoln than in states without income tax?
Yes, Lincoln residents benefit more because Nebraska's 5.84% state income tax means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 27.8% means more savings per dollar deducted.
Related Calculators
Tax Preparation Fees Deduction in Lincoln
Avg savings: $400/year
AMT Credit Carryforward in Lincoln
Avg savings: $3,000/year
Hobby Loss Rules & Deductions in Lincoln
Avg savings: $0/year
Federally Declared Disaster Loss in Lincoln
Avg savings: $8,000/year
Professional Gambler Business Deduction in Lincoln
Avg savings: $5,000/year
Innocent Spouse Relief in Lincoln
Avg savings: $5,000/year