Chris S. wrote:

- quote -

First of all, don't ever think we on the board are
unsympathetic. Several of us have "been there, done that"
too. Wha'ts more let the record state that we all
appreciate your having been harms way. More than we can
say.

Now, the EIC came into being back in 1974 as an incentive to
work (you're correct) by partially alleviating the effects
of social security taxes on low income workers. And for
most of the time until recently, the base amount for
figuring the credit WAS based on what we call FICA wages (
I almost typed "FUCA"! lol) But couple of years ago "they"
decided not to include otherwise non taxable amounts (such
as housing allowance and rations your's familiar with), nor
others things such as contributions to pension plans in
figuring the income base amount. I suspect this was to
enable more at the higher end to be able to benefit somewhat
from the EIC, after all there are more of them than on the
other end.

So that was what happened in shifting the base amount from
FICA to taxable wages. And I reckon we'll just have to
live with it.

As one who was there (in a previous life sotospeak),
"Welcome home, bro!"

Cheer$,
Harlan Lunsford, EA
Phenix City, AL and Columbus, GA (Ft Benning)

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Harlan Lunsford <lunstax[at]bellsouth.net> wrote:
- quote -

Yes, part of it has to do with EIC. One of the reasons EIC
was "made" according to the IRS website is to "provide an
incentive to work". Therefore, if you have little or no
income, you will recieve a low ammount for EIC. I did
work... a lot... but simply cannot claim this income as
taxable. Also, the child tax credit can be a refunded
ammount figured by taking 10% of your taxable income (minus
$10000) basically. My taxable income was only about $2500
because 10 months were non-taxable because I was in a combat
zone for those months. Please reread my original post. I
simply want to know if I can legally ask that this income be
taxable (basically by denying this "benefit"). I have done
the math, and it is correct. Thanks again. Sorry for the
delay in a response. I was visiting family. After 3 years in
Germany, 6 months in Kosovo, and a year in Iraq
(consecutive), it had been a while since I have seen
anybody.

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Dan Doshan wrote:
- quote -

Now I can say that is what I had in mind when I responded
initially, but wanted to hear it from him. Maybe we will.

Cheer$,
Harlan Lunsford, EA n LA

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AK47 <catsjnobrien[at]dogs.erols.com> wrote:
- quote -

I suspect it may have something to do with the EIC. If
poster has a family - child then reporting very little in
wages would give him or her very little in EIC. Just a
possibility.

Dan D.

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- quote -

Could it be some weird interplay with the EIC -- person
might be on the upward-sloping part of the EIC curve, so
increased income increases EIC, but person is still in
the income tax zero bracket?

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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Harlan Lunsford <lunstax[at]bellsouth.net> wrote:
- quote -

It sounds to me as though the OP is in a EIC situation,
where if his military pay were included as taxable income
he'd receive a higher EIC. The increase in the EIC would
more than offset the tax due on the money.

Unfortunately, I don't have an answer for him.

- quote -

What does this mean?

--
D.F. Manno
dommanno[at]netscape.net
"They that can give up essential liberty to obtain a little
temporary safety deserve neither liberty nor safety."
(Benjamin Franklin)

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Chris S. wrote:

- quote -

How is this mathematically possible?

--
To e-mail me get rid of the cats and dogs.

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Chris S. wrote:

- quote -

Your attitude is curious to say the least. Normally as you
know, most people, myself included, desire to pay less tax
rather than more.

So I'm curious, as I'm sure all others are too, just why in
your case this is not a "benifit"?

IMWTK

Cheer$,
Harlan Lunsford, EA n LA

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Greetings. As a military member which served most of 2003 in
Iraq, most of my income was nontaxable. This is a benifit to
some, however in my case it is not. After figuring my 2003
taxes, I found that I would recieve over $2000 more if I had
been taxed for the entire year. It is called a "benifit",
and in the IRS publication 3, it states several times that I
"may" exclude this income as taxable. On my W2, the ammount
in block 1 is only the income earned for the 2 months I was
not in a combat zone. Upon calling the IRS and asking if I
could include all income as taxable, I was told that they
were required to go by what is in block 1. As it is a
"benefit", is it possible to include this as taxable income?
Is it not my right to pay taxes, or include them as income
if you prefer. Help would be appreciated

Thanks Again
Chris

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