Combat Pay - EIC

[zeros]

As I understand the rules that you can use the combat pay exclusion to enhance the income computation thus resulting in a higher earned income credit. How is the combat pay determined? Where is it found on the W-2? Is it the difference between line 1 (wages), and line 3 (social security wages)?

There is an amount onf 12a marked "Q" which I assume is for something other than combat pay. Can you help?

[FEDUKE404]

Finding/using combat pay amounts

Your software should easily guide you into determining how much (none/some/all) of combat pay to use for purposes of obtaining a higher EITC. There is likely a worksheet within the software?

Also review the instructions for line 64 of Form 1040.

And as for determining the amount of combat pay that exists, the entry on Form W2, line 12, coded "Q" IS the amount of combat pay.

(Many issues other than combat pay could be responsible for the differences between lines 1 and 3.)

FE

[gboykin]

Yep - Q is combat pay.