Which of the following represents the correct way to handle a tax return for a worker contracted by the U.S. Armed Forces with income from working in a combat zone? Since the contractor worked in a combat zone, they qualify for the military combat zone exclusion. The contractor does not qualify for the military combat exclusion, but does qualify for the foreign earned income exclusion. The contractor does not qualify for the military combat exclusion or the foreign earned income exclusion, so this income will be taxable. The contractor can deduct their combat zone earnings as a charitable deduction.