Non Taxable Combat Pay, better to file on the 1040 EZ or better not to file?

Question

What are the advantages to the filler to show the non taxable combat pay? Or is it better not to? The EZ form also says that all i do is put EIC under line 8a and then write the amount under 8b, is this correct?

Answer 1

You wouldn't show it in your taxable income in any case. If you are eligible for EIC, you need to look at the tables and figure out whether including it for EIC purposes will give you a bigger EIC - find your EIC in the tables including it and not including it. Put whichever EIC amount is larger on the EIC line. If the EIC is larger including the non-taxable combat pay, then show it on the line below the EIC line, otherwise just leave it off.

Answer 2

I never use anything but 1040 forms regardless of the nature of the return.