You should calculate your tax return both ways (including and not including combat pay as earned income for EITC purposes) to determine which option gives you the best result. Alternatively, combat pay is included as earned income when calculating the refundable portion of the Child Tax Credit.
More Quotes from Mark Steber:
It's important to get started early, get organized and use all the tools at your disposal to maximize the size and speed of any tax refund you may get.Mark Steber
In general, preparing a return as a married couple filing jointly may give you the lowest tax liability and the highest standard deduction, but to find the best scenario, it's wise to calculate your return both ways and see which is the most advantageous for you. For example, if both of your incomes are about the same, you may pay less in taxes by filing jointly, depending on the rest of your return.
Mark Steber
If you owe money, it's just as important to be organized and get started early to reduce the amount of liability and find overlooked deductions.
Mark Steber
Very often, siblings will share in the support of the aging parent but will be surprised to learn that only one of them can claim the parent as a dependent.
Mark Steber
The AMT is not just a tax that rich people pay anymore.
Mark Steber
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