Attention Military Personnel Serving in Iraq, Afghanistan: ''Declare Combat Pay as Income, Receive Bigger Tax Refund'', Urges Petz Enterprises, Producers of TaxBrain Online.TRACY, Calif. -- Military personnel serving in combat areas do not have to pay federal income tax. However, Congress is now allowing soldiers, sailors SAILORS. Seamen, mariners. Vide Mariners; Seamen; Shipping Articles. , airmen and marines in combat areas such as Iraq and Afghanistan alternatives that could put significant cash back into the pockets of their "camos." According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Leroy E. Petz, Sr., President of Petz Enterprises, Inc., producers of the popular TaxBrain (R) Online Tax Service, "If a combat soldier's 2004 W-2 form W-2 Form The form that an employer must send to an employee and the IRS at the end of the year. The W-2 form reports an employee's annual wages and the amount of taxes withheld from his or her paycheck. shows a "Q" in Box 14, he or she has the potential to increase their federal tax refunds Tax refund Money back from the government when too much tax has been paid or withheld from a salary. by hundreds -- if not thousands -- of dollars. Because combat pay is tax free, most military personnel do not take extraordinary steps to generate refunds. However, combat pay can be treated as earned income Sources of money derived from the labor, professional service, or entrepreneurship of an individual taxpayer as opposed to funds generated by investments, dividends, and interest. for the Child Tax Credit, Child Dependent Care Expenses and Earned Income Credit Earned Income Credit A tax credit for low-income workers, even if no income tax was withheld from the worker's pay. Notes: This credit varies with family size, income and the number of children. , and is not considered earned income as a tax liability. By doing a little homework, personnel of all ranks serving in combat areas can generate some much-needed cash." Preparing, filing taxes via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the cited as best way to increase refunds Mr. Petz added, "Military personnel have easy access to the Internet through their government-owned computers. Unfortunately, they cannot permanently store personal information, such as their taxes. So Internet-based preparation and filing is really their best solution. TaxBrain Online is standing by to help with free expert advice, instant filing via the Internet, and significantly reduced preparation costs. Since almost 20% of TaxBrain users are in the military, we have a special affinity and understanding of their financial needs, especially in this difficult time for many." Eric Hayes, TaxBrain Online Tax Specialist said, "The Child Tax Credit allows the taxpayer with at least one qualifying child under the age of 17 a dollar-for-dollar credit against the tax liability up to the amount of the child care credit, $1,000 per child. With two children, if the tax liability were $1800 the Sergeant/Petty Officer would use $1800 of the $2000 child tax credit to reduce the tax to zero and could receive the additional $200 back as a refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies . "Obviously, the lower the tax liability, the higher the refund," said Mr. Hayes. "To maximize the deductions the service member will want to include the combat pay into income to get the full effect, generating a bigger refund. It's to their benefit to declare combat pay as income, and reap the rewards they so richly deserve." Complete details with specific examples are available by contacting Eric Hayes, TaxBrain.com Online Tax Service, 209-835-2720, ext. 2118 or ehayes@petzent.com About Petz Enterprises, Inc. Petz Enterprises, Inc. (a closely-held California corporation) is a software development company and a leading provider of tax preparation and filing solutions for the professional and consumer markets, helping to automate To turn a set of manual steps into an operation that goes by itself. See automation. and simplify federal, state and local tax compliance. PEI's Crosslink(R) line of professional tax software products enable tax practitioners and service bureaus to accurately prepare and file large volumes of individual tax returns. Founded in 1974, Tracy, CA-based PEI is dedicated to serving the need of the professional tax community and individual taxpayers worldwide. For more information, visit www.petzent.com |
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