On page 23 of the 2023 Publication 3, Example 1 – Election increases the EIC explains how to report the election to include nontaxable combat pay in earned income for purposes of figuring the earned income credit (EIC). If you elect to include your nontaxable combat pay in your earned income when figuring the EIC, enter the amount on Form 1040, line 1i. It is no longer necessary to include “NCP” in the space to the left of line 27 when including nontaxable combat pay in your earned income. For more information, see the instructions for Form 1040, lines 1i and 27.
