The 2004 W-2 forms for Military members will now port pay earned while serving in a Combat belt Tax Exclusion (CZTE) area.

The 2004 W-2 forms for Military members will now port pay earned while serving in a Combat belt Tax Exclusion (CZTE) area. This information will provide members the opportunity to determine their eligibility for the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC)

The CZTE pay information will be listed separately in form 14 of the member's W-2 form and will not be included with taxable wage information (Block 1)

EITC and CTC qualifications are based forward gross income, which includes pay earned while in a CZTE area. The addition of this information forward 2004 W-2s will aid in determining whether a member befittings the IRS requirements for EITC and CTC and which arrangement of computing taxes is greatest in number advantageous to each member's individual situation.

The 2004 W-2 are available upon the myPay Web site at https://mypay.dfas.mil/mypay.

For more information upon the Earned Income Tax Credit, child Tax Credit or other tax issues, contact a unit tax advisor or finance office.

Information is also available in the Armed Forces Tax Guide 2004 at www.irs.gov/pub/irs-pdf/ p3pdf and the Internal income Service Web site at www.irs.gov.

Story courtesy of Defense Finance and Accounting Service.

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