Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Earned Income Credit (EIC)

Calculating the Tax Credit

Combat Pay Election

If a taxpayer has combat pay listed in box 12a of Form W-2 marked with code Q, and you are preparing a paper return, you may need to prepare two EIC worksheets to determine if the combat pay should or should not be added to your taxpayer's income. If this election is chosen, write the combat pay amount by the EIC line of the payment section of the tax return. Review the earned income credit line on Form 1040, Page 2 —Payments.

Tip

If a taxpayer has combat pay listed in box 12 of Form W-2 marked with code Q, the software will determine if the combat pay should or should not be added to your taxpayer's income.

Form W-2 showing the code "Q" in box 12a
Form 1040, Page 2 — Other Taxes and Payments

Form 1040, Page 2 — Other Taxes and Payments