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EITC Information for Members of the Military

Members of the Military in a Combat Zone in 2005
The maximum amount of income you can earn and still get the Earned Income Tax Credit (EITC) has increased in 2005.
  • You may be able to take the credit if: You have more than one qualifying child and you earned less than $35,263 ($37,263 if married filing jointly),
  • You have one qualifying child and you earned less than $31,030 ($33,030 if married filing jointly), or
  • You do not have a qualifying child and you earned less than $11,750 ($13,750 if married filing jointly).
Nontaxable combat pay election. You can now elect to have your nontaxable combat pay included in earned income for the earned income credit.

Combat pay, Nontaxable. If you were a member of the U.S. Armed Forces who served in a combat zone, certain pay is excluded from your income. See Combat Zone Exclusion in Pub. 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 Form(s) W-2, box 12, with code Q.

Earned Income Tax Credit (EITC) is a tax credit for certain people who work and have earned income under $37,263. A tax credit usually means more money in you pocket, it reduces the amount of tax you owe and the EITC may also give you a refund.

Don't Guess. Use the EITC Assistant to find out if you are eligible for EITC. You may have earned it, why not claim it!
  • EITC Assistant Will you qualify for the EITC this year? Tired of guessing? Don't guess. Know. There's a lot to know about qualifying for EITC, but the most important thing to know is you can get help figuring it all out. The EITC Assistant is a convenient way for you to find out if you are likely to qualify for the EITC tax credit by answering questions online, about yourself, your children, your living situation, and your income. You will see the results of the eligibility check right away, on your computer screen. The Assistant can be used by individuals, tax practitioners, employers, community and public service organizations, and IRS partners. EITC is a refundable credit that helps families.
 

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