Yes the link I provided is about Nontaxable military pay.
it says:
“If you or your spouse got nontaxable pay as a member of the Armed Forces, you don’t have to include it as earned income on your federal taxes.
If you and your spouse do choose to include your nontaxable pay as earned income for the EITC, you may owe less tax and get a larger refund. The person who includes your nontaxable pay as earned income must include all of it.”
It then continues with:
“Nontaxable pay includes:
- Combat pay
- The Basic Allowance for Housing (BAH)
- The Basic Allowance for Subsistence (BAS)”
So this explicitly states you can include Nontaxable military pay for purposes of the EITC and then lists BAH as a qualifying Nontaxable military pay.
Furthermore it states:
”There are 4 ways you can include nontaxable pay when you claim the EITC. You can:
- Choose to include all your nontaxable pay while your spouse doesn’t include any of their nontaxable combat pay
- Choose to include none of your nontaxable pay while your spouse includes all their nontaxable combat pay
- Both choose to include all your nontaxable pay
- Both choose not to include any of your nontaxable pay”
So it this is definitely saying that you can include BAH as earned income for purposes of the EITC.
