State Taxes

Does your state of legal residence tax residents living outside the state? If so, you probably need to file a state tax return.
If you are a soldier, you have probably already paid most of the state tax you owe, because Finance withholds state tax from your pay and sends it to the state designated as your state of legal residence on your Leave and Earnings Statement. However, just because you had state tax withheld doesn't mean you can skip filing a state tax return. You won't know whether you had enough tax withheld to meet your state tax obligation, and you won't get a refund of overwithheld taxes, unless you file a return.
Filing a state tax return in just your state of legal residence does not necessarily satisfy all of your state tax obligations. If you or your spouse worked in another state, you may need to file a "nonresident" tax return with that state. If you are renting out a home in another state, you may need to file a "nonresident" return with that state, too.
Military pay is exempt from tax in Alaska, Florida, Idaho, Michigan, Montana, Nevada, New Hampshire, Oregon, South Dakota, Tennessee, Texas, Vermont, Washington, and Wyoming. Other states, including Connecticut, Missouri, New Jersey, New York, Ohio, and Pennsylvania do not tax residents who maintain a permanent place of abode outside the state for the entire year.
Remember, each case is different. This summary gives you general information only. It is not a substitute for talking with a lawyer. You may consult a legal assistance attorney.
 For more tax information, contact your Unit Tax Advisor or the Army Tax Assistance Center at 684-4986.

 

Last Reviewed: July 21, 2008

 
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