Should I include combat pay?

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

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

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.

MayaDAnswer

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.

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