Military W-2s Make it Easier to Determine Tax Credit Eligibility |
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ARLINGTON, Va. (NNS) -- The 2004
W-2 forms for military members will now report
pay earned while serving in a Combat Zone Tax
Exclusion (CZTE) area. This information will
provide members the opportunity to determine
their eligibility for the Earned Income Tax
Credit (EITC) and Child Tax Credit (CTC). The CZTE pay information will be listed separately in Block 14 of the member’s W-2 form and will not be included with taxable wage information (Block 1). |
EITC and CTC qualifications are based on
gross income, which includes pay earned while
in a CZTE area. The addition of this
information on 2004 W-2s will aid in
determining whether a member meets the IRS
requirements for EITC and CTC, and which
method of computing taxes is most advantageous
to each member’s individual situation.
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