Rev. Yvonne Cormier is a full-time minister. The church allows her to use a parsonage that has an annual fair rental value of $26,400. The church pays her an annual salary of $72,000, of which $7,300 is designated for utility costs. Her actual utility costs during the year were $7,100. How much income will Rev. Cormier report for income tax purposes?

$64,700

$64,900

$72,000

$75,000

Jan was stationed in a combat zone from May 15, 2020, until May 15, 2021. She has not submitted an extension to file her return, and has a federal balance due of $380. She comes to you on October 12, 2021, to file her 2020 return. What is the due date of that return?

January 25, 2022.

October 15, 2021

July 15, 2021

April 15, 2021

Corporal Ethan Marshall was deployed in a combat zone for all of 2020. He is married and has three children. Ethan's nontaxable combat pay in 2020 is $26,000. His wife worked part-time while Ethan was deployed and earned $6,500. What is the maximum amount of earned income the Marshalls can report for Earned Income Tax Credit purposes in 2020?

$32,500

$26,000

$19,500

$6,500

When a servicemember's contributions to a traditional Thrift Savings Plan (TSP) include combat pay, how are distributions from that plan treated?

Any distributions from the Thrift Savings Plan are tax-exempt.

The portion of the distribution attributable to combat pay is tax-exempt. The earnings on that portion are taxable.

The distributions are treated like any other defined-contribution plan and are taxable.

Both the portion of the distribution attributable to combat pay and the earnings from that portion are tax-exempt.