Sentences with phrase «nontaxable combat»

There's an exception to the rule that the income has to be taxable: nontaxable combat pay is qualifying income for this purpose.

Compensation includes wages, salaries, commissions, self - employment income, alimony, and nontaxable combat pay.

If you don't really need to spend the money distributed from your Inherited IRA for your household expenses (your opening statement that your income for 2016 is low might make this unlikely), and (i) you and / or your spouse received compensation (earned income such as wages, salary, self - employment income, commissions for sales, nontaxable combat pay for US Military Personnel, etc) in 2016, and (ii) you were not 70.5 years of age by December 2016, then you and your wife can make contributions to existing IRAs in your names or establish new IRAs in your names.

If you are stationed in a combat zone for at least one day out of a month, not only should you receive a nontaxable combat pay allowance for that month, but the entire month's regular salary may be excluded from your taxable income.

Your nontaxable combat pay will be used in the calculation of your Earned Income Tax Credit which may give you a larger EITC credit.

Contributions are made from earnings such as wages, salaries, commissions, self - employment, alimony or separate maintenance and nontaxable combat pay.

What counts as taxable compensation: wages and salaries, commissions, self - employment income, alimony and separate maintenance, and nontaxable combat pay.

Not exact matches

Even in this case, your combat pay remains nontaxable.

Members of the armed forces do not normally include nontaxable pay, such as combat pay, in their earned income when calculating the Earned Income Credit.