Military pay combat zone TSA payments

[JG EA]

Form 8880 lists Thrift Savings Plan as a contribution that qualifies for the credit.

Client's TSA amount was in Box 14 Code E. This means TSA (tax exempt)
Client has combat pay and so it is not taxed with the rest of his militarty pay.

Do you think that it is box 14 because I CANNOT use it for 8880? Would it matter that it was tax exempt? All the contributions to qualifed plans for the credit are not taxed either.

[Gary2]

I had a similar case that I was about to research, until I realized that his regular pay brought him to the $2K limit for the box 12 code D. I think it counts, but I'd check Pub 3 and the 8880 instructions to be sure.

[JG EA]

I had a similar case that I was about to research, until I realized that his regular pay brought him to the $2K limit for the box 12 code D. I think it counts, but I'd check Pub 3 and the 8880 instructions to be sure.

I can't find anything on it in Pub 3. On the 8880 under who can take itsays:
"qualified retirement plan as defined in section 4974(c) (including the federal Thrift Savings Plan"
Since there isn't a code for this in Box 12 - I don't think so anyway - wouldn't that make it deductible since their tax exempt combat pay can be used to take EIC if they qualify?
Maybe that is the only reason TSA it is in Box 14 and not because connected with combat pay?
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What I decided to do. I'm figuring that its designation "tax exempt" means I can't take it on 8880.Normal tax exempt income is not used in credits like EIC. It is a special rule that combat pay can be used for EIC.
If I find out later this is wrong I'll amend.