Question: Paul Thomas and Karen Jackson are both in the U. S. Armed Forces and each receives combat zone pay. Karen is a commissioned officer, whereas
Paul Thomas and Karen Jackson are both in the U. S. Armed Forces and each receives combat zone pay. Karen is a commissioned officer, whereas Paul is enlisted personnel. How is each taxed on the combat zone pay? How does Paul treat his combat zone pay when computing his earned income tax credit?
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Combat zone pay is generally excludable from income However the maximum amount ... View full answer
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