Question: Drew and Colby Denison are married and have two children, ages 5 and 7, who lived with Colby all year.
Drew, Colby and their two children are all U.S. citizens and have valid Social Security numbers.
Drew deployed to Afghanistan on March 31, 2016. His last day in the combat zone was January 31, 2017.
Drew's Form W-2 shows:
Box 1 = $10,000
Box 12a = $28,500, Code Q
Colby's Form W-2 shows $10,200 in box 1. This was her only income.
1. Colby and Drew can each file as Head of Household because they have two children. True or false
2. What are the Denisons' taxable wages that will be reported on their Form 1040, line 7?
3. Combat pay is never considered earned income when calculating the earned income credit. True or False
4. The couple did not file their 2015 tax return because of Drew's deployment. Their deadline to file both the 2015 and 2016 returns is April 18, 2017. True or False