How Do I Make a Claim for Tax Forgiveness? — How Is Tax Forgiveness Claimed?: Military Taxes (2025 IRS Guide)

This guide covers “How Do I Make a Claim for Tax Forgiveness? — How Is Tax Forgiveness Claimed?” within military taxes. The following material presents the IRS treatment of this topic, including the qualifications, exceptions, and examples in the source section. Read the rules alongside the facts of your own situation before deciding what to report, deduct, or document.

Adapted from Publication 3 (2025), Armed Forces' Tax Guide, published by the Internal Revenue Service. This guide retains the source edition’s years, amounts, deadlines, and examples. It is guidance for that edition, not a statement that the same figures apply to every tax year.

Context for these rules

Tax liability can be forgiven if a member of the U.S. Armed Forces dies:

• While in active service in a combat zone (see Combat Zone Related Forgiveness, later);

• From wounds, disease, or injury received in a combat zone (see Combat Zone Related Forgiveness, later); or

• From wounds or injury incurred in a terrorist or military action (see Terrorist or Military Action Related Forgiveness, later).

How Do I Make a Claim for Tax Forgiveness? — How Is Tax Forgiveness Claimed?

If the decedent's tax liability is forgiven, the personal representative should take the following steps.

Step 1: File the proper form.

The form filed to claim the tax forgiveness depends on whether a return has already been filed for the tax year.

• File a paper Form 1040 or 1040-SR if a tax return hasn't been filed for the tax year. Form W-2 must accompany the return.

• File a paper Form 1040-X if a tax return has been filed. A separate paper Form 1040-X must be filed for each year in question.

Step 2: Properly identify the return.

Properly identify the return by providing the conflict or action on which the claim for tax forgiveness is based.

• All returns and claims must be identified by writing “Iraqi Freedom—KIA,” “Enduring Freedom—KIA,” “Kosovo Operation—KIA,” “Desert Storm—KIA,” or “Former Yugoslavia—KIA” in bold letters on the top of page 1 of the return or claim.

• On Forms 1040, 1040-SR, and 1040-X, the phrase “Iraqi Freedom—KIA,” “Enduring Freedom—KIA,” “Kosovo Operation—KIA,” “Desert Storm—KIA,” or “Former Yugoslavia—KIA” must be written on the line for total tax.

• If the individual was killed in a terrorist action, write “KITA” on the front of the return and on the line for total tax.

Step 3: Include a before and after tax forgiveness computation.

Include an attachment with a computation of the decedent's tax liability before any amount is forgiven and the amount that is to be forgiven. For computations when the decedent has filed joint returns or the spouse has filed as married filing separately, see below.

Computation when the decedent filed joint returns.

Only the decedent's part of the joint income tax liability is eligible for the refund or tax forgiveness. To determine the decedent's part, the person filing the claim must:

1. Figure the income tax for which the decedent would have been liable if a separate return had been filed,

2. Figure the income tax for which the spouse would have been liable if a separate return had been filed, and

3. Multiply the joint tax liability by a fraction. The top number of the fraction is the amount in (1) above. The bottom number of the fraction is the total of (1) and (2) above.

The amount in (3) is the decedent's tax liability that is eligible for the refund or tax forgiveness. If you are unable to complete this process, you should attach a statement of all income and deductions, indicating the part that belongs to each spouse. The IRS will determine the amount eligible for forgiveness.

Computation when in a community property state.

If the decedent's legal residence was in a community property state and the spouse reported half the military pay on a separate return, the spouse can get a refund of taxes paid on their share of the pay for the years involved. The forgiveness of unpaid tax on the military pay would also apply to the half owed by the spouse for the years involved. See Community Property, earlier, for a discussion of community property.

Step 4: Provide Form 1310, if required.

Form 1310 must accompany the return unless the person filing the return is:

• A surviving spouse filing an original or amended joint return, or

• A personal representative filing an original Form 1040 or 1040-SR for the decedent and a court certificate showing the appointment as personal representative is attached to the return.

Step 5: Provide the death certification.

The death certification must come from the proper agency.

For military and civilian employees of the DoD, certification must be made by the Department on DD Form 1300, Report of Casualty.

For civilian employees of all other agencies who are killed overseas, certification must be a letter signed by the Director General of the Foreign Service, Department of State, or their delegate. The certification must include the deceased individual's name and SSN, the date of injury, the date of death, and a statement that the individual died as the result of a terrorist or military action. If the individual died as a result of a terrorist or military action outside the United States, the statement must also include the fact that the individual was a U.S. employee on the date of injury and on the date of death.

For additional information, see Revenue Procedure 2004-26, 2004-19 I.R.B. 890, which is available at IRS.gov/IRB/2004-19_IRB#RP-2004-26.

Can I get more time to file if I don't have enough tax information by the deadline?

If the death certification required in Step 5 has been received but there isn't enough tax information to file a timely claim for refund, file Form 1040, if no prior return has been filed, or Form 1040-X with Form 1310 by the deadline. Include a statement saying that an amended claim will be filed as soon as the necessary tax information is available. File the amended Form 1040-X as soon as you get the needed tax information.

Using the guidance

Keep the documents that establish the dates, amounts, and circumstances described above. References to other chapters, forms, worksheets, or earlier and later sections refer to the linked IRS publication. Check the full publication and its updates before relying on a rule for a different tax year or a situation not addressed here.

Sources and further reading

• Publication 3 (2025), Armed Forces' Tax Guide: Forgiveness of Decedent's Tax Liability — How Do I Make a Claim for Tax Forgiveness? — How Is Tax Forgiveness Claimed? — Internal Revenue Service; 2025 edition.

The cited U.S. government text is in the public domain. Source accessed October 28, 2026. Fynoptic has organized this material for educational use and is independent of, and not endorsed by, the IRS.