Terry D EA Posted April 17, 2021 Report Share Posted April 17, 2021 Only have done a very few military tax returns over the years. I have a client who's son is in active duty with the Navy. During 2019 he receive form W-2 with box 1 and 2 blank. Box 12 has code Q which is combat pay. He has no other income from any other sources. I have looked at Pub 3 to find out if he has to file a tax return. All I have found, which I knew, that combat pay is excluded from taxable income. The W-2 does show amounts in box 3, 4 5 & 6. Question is does he have to file a return? If so, how do I get the return to be eligible for E-file with no wages on the W-2/ Quote Link to comment Share on other sites More sharing options...
Possi Posted April 17, 2021 Report Share Posted April 17, 2021 No, he does not. I have never done this, BUT he might be able to include his combat pay in order to collect some refundable tax credits... like EIC. Quote Link to comment Share on other sites More sharing options...
Possi Posted April 17, 2021 Report Share Posted April 17, 2021 https://www.taxact.com/support/657/2020/earned-income-credit-entering-combat-pay-for-calculation?hideLayout=False#:~:text=You can elect to include,each make your own election. "You can elect to include your nontaxable combat pay in earned income for the EIC. If you make the election, you must include in earned income all nontaxable combat pay you received. If you are filing a joint return and both you and your spouse received nontaxable combat pay, you can each make your own election." Quote Link to comment Share on other sites More sharing options...
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