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Filing Advice 2006-128 explains how to treat tax-exempt wages paid to drafted soldiers and sailors. Such wages must be reported as a marginal entry coded “C” (for conscription) on Line 7, Form 1040 or 1040-NR. The exclusion covers earnings up to the applicable federal minimum wage level, paid to U.S. citizens age 18 to 45 serving under conscription orders in any military, state national guard, or alternative mandatory public service program (with the exception of service in any penal institute).
Under present law there is NO applicable federal minimum wage level for conscriptee service, but that is expected to be included in a technical corrections bill when Congress reconvenes in January.
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Filing Advice 2006-128 explains how to treat tax-exempt wages paid to drafted soldiers and sailors. Such wages must be reported as a marginal entry coded “C” (for conscription) on Line 7, Form 1040 or 1040-NR. The exclusion covers earnings up to the applicable federal minimum wage level, paid to U.S. citizens age 18 to 45 serving under conscription orders in any military, state national guard, or alternative mandatory public service program (with the exception of service in any penal institute).
Under present law there is NO applicable federal minimum wage level for conscriptee service, but that is expected to be included in a technical corrections bill when Congress reconvenes in January.
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