We may have filed our taxes wrong... it's possible that we didn't put the total income, maybe only a portion of it. My husband was deployed to iraq, do we include the money he made in iraq as part of his income for that year?

Yes, generally you must report the worldwide income. But in this case there may be exception. Also allowances generally are not taxable.
See Publication 3, Armed Forces' Tax Guide.

My hubby was deployed 2006-2007... when you file your taxes you do not include combat pay... I think that amount is listed in box 12 of the w-2. Any bonuses you got (like part of an enlistment bonus) are still taxable though. So for example my husband's taxable income for the year 2007 was only like 4000 something... (which was part of the enlistment bonus) Do you live near a base? They typically have some tax people available for free on the base. If you are still unsure about it check with one of them even if it is next spring when you file for 2008.

Good luck and hope your hubby stays safe!

In virtually every case, military pay earned while deployed to Southwest Asia is completely tax-exempt!

If you prepared your return yourself, you need to seek out competent professional tax help to examine your return to make sure it was prepared correctly. Your local Staff Judge Advocate probably can provide that kind of assistance for free.