Troops deployed in combat areas get tax credit options Published Feb. 17, 2005 By Gerry J. Gilmore American Forces Press Service WASHINGTON (AFPN) -- Servicemembers receiving federal tax exemptions for some or all of their military pay may now elect to apply for certain tax credit options, the chief of the Armed Forces Tax Council said here Feb. 17.Troops deployed to combat zones can now apply for tax refunds based on earned income tax credits, as well as additional child tax credits, said Army Lt. Col. Janet Fenton, the council’s executive director. The council monitors and coordinates tax issues involving active-duty and reserve-component servicemembers.The earned income credit, Colonel Fenton said, primarily involves lower-income filers with children. The additional child tax credit, she said, may provide refunds for children younger than age 17.Servicemembers who want to apply for the credit refunds are required to fill out and file a federal tax return, she said.Enlisted troops serving in combat areas already have all of their military pay excluded from federal taxes, Colonel Fenton said, while officers in combat zones can exclude as much as $6,529 of their monthly pay.Troops deployed to noncombat overseas areas have until June 15 to file their income taxes, she said.Troops serving in a combat zone, the colonel said, have up to 180 days to file their taxes after departing the area.“Someone who is in Iraq right now," she said, "would not have to file their 2004 tax return until they leave Iraq."However, some overseas servicemembers would want to file early, Colonel Fenton said, because they may be due a refund. Military-operated tax centers at stateside and overseas locales, she said, can provide servicemembers with tax filing assistance.And, married servicemembers deployed to combat and noncombat overseas locales can opt to have spouses file tax returns, she said, provided there is an applicable power of attorney.