Ilyce Glink's Blog

Welcome to Ilyce Glink's blog! Here you'll find Ilyce's latest insights on personal finance advice, real estate advice and consumer issues. Come back often for timely and interesting posts on a wide variety of topics.

Thursday, March 20, 2008

IRS Wants to Ensure Armed Forces Get Stimulus Payment

If you're serving in the military and receive non-taxable combat pay, you may want to report it on your tax form anyway, to ensure you will receive a tax rebate as part of the economic stimulus plan.

To get the rebate you have to have earned at least $3,000 last year and your combat pay may get you to that point, even if it is not taxable.

The U.S. Internal Revenue Service issued guidance today saying to report this combat pay on line 40b of form 1040A.

To figure out how much combat pay you've received look at Box 12 of your W-2. It should also have a Code Q there, according to the IRS.

If you're out of the country you can have someone file taxes on your behalf with a power of attorney.

For more information on some of the special tax provisions for members of the military, check out Ilyce's forum, Tax category.

Ilyce Glink's Blog

IRS Wants to Ensure Armed Forces Get Stimulus Payment

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