From: Havelock, NC

Good Day, TaxMama

I was told that, my spouse's income is also tax-free while I serve in a combat zone.

Is this true or not?

I can not find anything on the Web about this topic.

James

 

TaxMama Replies

Actually, this is not one of my areas of expertise, but one of the instructors for TaxMama's EA Exam does know the answer.

Let's see what Roger B. Adams, EA says....

 

 

 

All the rules and benefits extended to you James can be found in the "Armed Forces Tax Guide"

Another good site is here.

I'm sorry to report that your wife's income is not excludible. Since yours is, it might be worthwhile exploring the "earned income credit" possibilities for your family.

Best regards, Roger B. Adams, EA