You should calculate your tax return both ways ...

You should calculate your tax return both ways (including and not including combat pay as earned income for EITC purposes) to determine which option gives you the best result. Alternatively, combat pay is included as earned income when calculating the refundable portion of the Child Tax Credit.

- Mark Steber

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Non-cash donations are one of America's most overlooked tax deductions. - Mark Steber

Very often, siblings will share in the support of the aging parent but will be surprised to learn that only one of them can claim the parent as a dependent. - Mark Steber

Many times, certain deductible expenses are overlooked. Be sure to keep track of all of your travel expenses, including transportation, parking fees, ferry fees, tolls, lodging, meals and other incidental expenses. An important point to remember about military differential pay is that while the income is taxable, this pay is not considered wages and is not subject to Social Security and Medicare taxes. So it's important that military taxpayers ensure that their employers treat these earnings correctly. - Mark Steber

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