Should I include combat pay?

Forum|Forum|4 years ago
March 2, 2022
1 reply
29 views

military combat zone pay

TurboTax Self Employed Online

Best answer by MayaD

The Working Families Tax Relief Act of 2004 and the Gulf Opportunity Zone Act of 2005 give military personnel the option of treating combat pay as earned income for purposes of the EIC.

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. If you choose to include your combat pay, you must include all of it.

ThomasM125

Level 15

I'm not sure what you are asking exactly. Combat pay is not taxable, but that will be reflected on your W-2 form. So, all you need to do is enter W-2 form in TurboTax and the program will determine the correct way to report your combat pay on your tax return.

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mellimolinaAuthor

Level 2

Hi... the EITC (Earned Income Tax CrediT) is asking if I want to include it? It sound like it is giving the option to increase or decrease the refund.

mellimolinaAuthor

Level 2

The Working Families Tax Relief Act of 2004 and the Gulf Opportunity Zone Act of 2005 give military personnel the option of treating combat pay as earned income for purposes of the EIC.

Thanks for your answer. I just want to make sure if including it or not on the EICT is optional. I know it will be reported on the w2 but I was not sure for the EICT if thos amount has to be there or not.