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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.

Afghanistan area. By Executive Order No. 13239, Afghanistan (and airspace above) was designated as a combat zone beginning September 19, 2001.

The Kosovo area. By Executive Order No. 13119 and Public Law 106–21, the following locations (including air space above) were designated as a combat zone and a qualified hazardous duty area beginning March 24, 1999.

• Federal Republic of Yugoslavia (Serbia/Montenegro)

• Albania

• The Adriatic Sea

• The Ionian Sea—north of the 39th parallel (including all of the airspace in connection with the Kosovo operation.)

Persian Gulf area. By Executive Order No. 12744, the following locations (and airspace above) were designated as a combat zone beginning January 17, 1991.

• The Persian Gulf,

• The Red Sea,

• The Gulf of Oman,

• The part of the Arabian Sea that is north of 10 degrees north latitude and west of 68 degrees east longitude,

• The Gulf of Aden, and

• The total land areas of Iraq, Kuwait, Saudi Arabia, Oman, Bahrain, Qatar, and the United Arab Emirates.

Qualified hazardous duty area. Beginning November 21, 1995, a qualified hazardous duty area in the former Yugoslavia is treated as if it were a combat zone. The qualified hazardous duty area includes:

• Bosnia and Herzegovina,

• Croatia, and

• Macedonia.

Note. If you satisfy additional requirements, you may be entitled to full combat zone tax benefits. See Qualifying service outside combat zone, later.

Members of the Armed Forces deployed overseas away from their permanent duty station in support of operations in a qualified hazardous duty area, or performing qualifying service outside the qualified hazardous duty area, are treated as if they are in a combat zone solely for the purposes of the extension of deadlines. These personnel are not entitled to other combat zone tax benefits.

Above Information Extracted from IRS Publication #3, Armed Forces Tax Guide