Question: What Line Is Combat Pay On 1040?

Do I have to claim combat pay on my taxes?

Combat Pay You do not have to report nontaxable pay you receive as a member of the Armed Forces as earned income for purposes of the EITC.

Examples of nontaxable military pay are combat pay, the Basic Allowance for Housing (BAH), and the Basic Allowance for Subsistence (BAS)..

What is considered a combat zone?

A combat zone is any area the President designates by Executive Order as an area in which the U.S. Armed Forces are engaging or have engaged in combat. An area usually becomes a combat zone and ceases to be a combat zone on the dates the President designates by Executive Order.

What is taxable combat pay included in AGI?

The balance of income is included in the W-2, Box 1, and therefore is included in the AGI. (This “taxable” combat pay is the amount that is to be excluded from income.) The highest level of enlisted pay is for an E-9.

What is combat pay on w2?

If you are a member of the U.S. Armed Forces who serves in a combat zone, you may exclude certain pay from your income. You do not actually need to show the exclusion on your tax return because income that qualifies for the exclusion is not included in the wages reported on your Form W-2.

Can a single person get the earned income credit?

You must have at least $1 of earned income (pensions and unemployment don’t count). Your investment income must be $3,650 or less. You can’t claim the earned income tax credit if you’re married filing separately.

How much would an e4 make on deployment?

Special Pays for Deployed Soldiers Hazardous duty pay, as of 2018, is $150 per month. Hostile fire or imminent danger pay is $225 per month. Enlisted soldiers qualify for $340 per month in diving pay, and an E-4 earns up to $308 per month for sea duty.

Where is the combat pay on 1040?

Combat pay, nontaxable. 3. You can elect to include this pay in your earned income when figuring the EIC. The amount of your nontaxable combat pay should be shown in box 12 of Form(s) W-2 with code Q.

What is combat pay on tax return?

Generally, any form of military pay earned while on deployment in a combat zone is excluded from federal income tax. This translates to a significant tax savings for the active service member in combat and his family back home.

Is combat pay considered earned income?

Combat pay is exempt from income taxes, thus providing military personnel with additional compensation for serving in dangerous areas. 2 Prior to 2005, combat pay was not counted as earned income for the purposes of calculating the EITC.

Who gets combat pay?

Combat pay is not open only to combat soldiers. Any person enrolled in a branch of the U.S. military who is assigned to a designated hazardous area is eligible to receive combat pay. Spending as little as one hour on duty in a hazardous zone qualifies for an entire month’s combat pay.

What is a non taxable combat pay?

It is a place where taxpayers who served in the military and received combat pay (which is nontaxable) may elect to classify their pay as “earned income” for purposes of the EIC. Military members may locate their nontaxable combat pay amount on the Form W-2 (Box 12, Code Q) issued by their employing military branch.