he was in irac for all of 2005 and someone told us he didn't have to file taxes because they don't hold out federal taxes if your in a war zone but he had 2 dependents. can he still claim the earned income tax credit on them, does anyone know? is it worth it to still file?
2007-01-08 07:42:04 · 5 answers · asked by heavensent4u1981 1 in Business & Finance ➔ Taxes ➔ United States
sorry, i know its spelled "iraq" but i was typing fast......lol
2007-01-08 07:58:04 · update #1
Yes he still has to file taxes since technically he earned income in the U.S. eventhough he was overseas. Alot of his money should be tax free so he could probably get the earned income credit if his taxable income was under a certain amount of money, I can't remember how much. I have done taxes for plenty of years.
2007-01-08 07:50:21 · answer #1 · answered by mypassions4life 5 · 0⤊ 0⤋
Yes, he needs to file a tax return. Some of the income may be exempt, although Congress has repealed the main foreign service tax exemption.
2007-01-08 15:50:04 · answer #2 · answered by Anonymous · 0⤊ 0⤋
My friend who spent a year there in the army said that the money was tax free. But I would still speak to your tax preparer to be safe.
2007-01-08 15:50:02 · answer #3 · answered by Should be Working! 4 · 0⤊ 0⤋
FILE! Better to have a record of filling it out then to have them come looking for you. Even if you don't owe any taxes, you should file the forms.
2007-01-08 15:51:31 · answer #4 · answered by Aggie80 5 · 0⤊ 0⤋
Speak to an accountant for tax advice, this isnt the place for that really.
Oh and it's 'Iraq'.
2007-01-08 15:44:54 · answer #5 · answered by Morgan W 3 · 1⤊ 0⤋