Have been told that if you leave the war zone before spending 330 days you will have to pay taxes on the money earn.
2007-04-12 17:11:26 · 3 answers · asked by Ronald B 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
All of the money earned in a war zone is nontaxable. Basically,if you were there for 330 days you will only be paying taxes on 1 month worth of pay. Any bonuses or anything received during that time is nontaxable. You can see how much you will have excluded by looking in box 12. The Q and amount shows this non-taxable pay. if you only spent 1 month there, then that one month is tax exempt (same thing goes for 1 day). Enjoy your hard earned cash!!! And, thanks for your service.
2007-04-13 02:31:20 · answer #1 · answered by Casper K 2 · 0⤊ 0⤋
For military members up to and including warrant officer, pay made in a combat zone is excluded from tax, no matter how long or short a time you were there. It should be broken out on your W-2 so you or a tax preparer can easily tell what can be excluded. Warning - not all preparers know how to properly handle the military exclusion, so if you have someone prepare your taxes, be sure to find someone who knows the rules.
There's a special rule with the EIC for nontaxable combat pay - you can elect to include it or exclude it for the EIC calculation, whichever benefits you, if you're eligible for EIC.
Good luck, and thanks for being there......
2007-04-13 02:28:40 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
Paul Wolfowitz said we ought to apply oil funds from Iraq to pay for the conflict, it never occurred. yet, the cost of oil did triple interior some months and the oil organizations made a killing. protection contractors like Halliburton and the protection marketplace made a ton of money. you may want to appreciate the relationships of folk who run the country to marketplace to be sure out who makes the money. vice chairman Cheney became once CEO of Halliburton and made numerous funds. George Bush became an oil guy and made numerous funds. The Bush relatives and the bin encumbered relatives were both heavy traders in the Carlyle team, a huge protection conglomerate. both households made plenty.
2016-11-23 16:22:17 · answer #3 · answered by Anonymous · 0⤊ 0⤋