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New Member
posted Jan 28, 2021 3:29:35 PM

I am not in military but system is stating combat pay? Any ideas why?

In effort to increase return system is offering option to use last years income but mentions combat pay. I am not in military,  Confused what system is doing. Any ideas.? Thanks

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Expert Alumni
Jan 30, 2021 1:28:12 PM

This year you may use 2019 Tax year's income if that results in a increase in the Earned Income Tax Credit (EITC). A taxpayer may also elect to include combat pay. 

If your situation does not relate to the option of claiming combat pay, simply move forward. 

 

If your income was higher in 2019, and if using that amount would give you a better credit on your 2020 tax year return, you may use that higher income amount for the credit (only for computing the Earned Income Tax Credit).