topic According to the IRS you can include military BAH as income for EITC purposes. How do you do this in TurboTax? I can not find the option anywhere? in Get your taxes done using TurboTax

According to the IRS you can include military BAH as income for EITC purposes. How do you do this in TurboTax? I can not find the option anywhere?

chastitymmontes — Mon, 23 Feb 2026 12:49:27 GMT

BAH is a non-taxable housing allowance for military personnel. This is NOT related to non-taxable combat pay.

Re: According to the IRS you can include military BAH as income for EITC purposes. How do you do ...

ErnieS0 — Sat, 11 Feb 2023 02:57:02 GMT

You can’t include Basic Allowance for Housing as earned income for purposes of the Earned Income Tax Credit.

IRS says when figuring your earned income for purposes of the EIC, don't include any of these amounts.

Basic pay or special, bonus, or other incentive pay that is subject to the combat zone exclusion (unless you make the election described earlier under Can I treat my nontaxable combat zone pay as earned income).
Basic Allowance for Housing (BAH).
Basic Allowance for Subsistence (BAS).
Any other nontaxable employee compensation.
Interest and dividends.
Social security and railroad retirement benefits.
Certain workfare payments.
Pensions or annuities.
Veterans' benefits (including VA rehabilitation payments).
Workers' compensation.
Unemployment compensation.
Alimony and child support.

See What’s is included in my earned income for EIC

Re: According to the IRS you can include military BAH as income for EITC purposes. How do you do ...

chastitymmontes — Sat, 11 Feb 2023 15:49:22 GMT

I’m seeing conflicting information from what you provided on the IRS website:

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/military-and-clergy-rules-for-the-earned-income-tax-credit

This page was last updated on January 27th, 2023 so it seems very recent. It says you don’t have to include it but you can include it as income for EITC purposes.

Re: According to the IRS you can include military BAH as income for EITC purposes. How do you do ...

DMarkM1 — Sat, 11 Feb 2023 16:43:08 GMT

The link you reference shows a definition of military non-taxable pay. However in the links provided by @ErnieS0 you will see that only "Nontaxable Combat Pay" may be used to qualify for the Earned Income Tax Credit.

The amount that may be added to your earned income is coded "Q" in box 12 on your form W2. If there was an amount coded "Q" on your form W2 then the Earned Income Tax Credit Topic will ask if you wish to include this income in calculating the credit.

Re: According to the IRS you can include military BAH as income for EITC purposes. How do you do ...

chastitymmontes — Thu, 16 Feb 2023 03:54:18 GMT

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
- See which areas are Combat Zones
- See Questions and Answers on more Combat Zones provisions for more information about 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.

Re: According to the IRS you can include military BAH as income for EITC purposes. How do you do ...

DawnC — Thu, 16 Feb 2023 04:41:48 GMT

The only nontaxable military pay you can elect to include for Earned Income Credit purposes is combat pay. BAH and BAS are examples of nontaxable military pay, but they are never considered Earned Income, and you can't elect to include them. Please check that link. You can elect to include nontaxable combat pay. I know that page is confusing, but nontaxable combat pay, which is not considered earned income, is the only thing you can elect to include in earned income for the purposes of the EIC credit. There is nowhere it says you can elect to include nontaxable BAH or BAS as earned income.

From IRS Pub 596 - Nontaxable pay for members of the Armed Forces isn't considered earned income for the EIC. Examples of nontaxable military pay are combat pay, the Basic Allowance for Housing (BAH), and the Basic Allowance for Subsistence (BAS). See Pub. 3, Armed Forces Tax Guide, for more information.

.Combat pay. You can elect to include your nontaxable combat pay in earned income for the EIC. See Nontaxable combat pay in chapter 4.