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cali-joy
Returning Member

We are military and got student loan money through the student loan repayment program and a misc w2. The w2 doesn't list a state. Is the money state taxable for Idaho?

The w2 lists state wages (line 16) and local wages (line 18), but every other line is blank, apart from lines 1 and 2 (federal wages and income tax withheld). I am trying to figure out if we need to include this student loan repayment money through the military as state wages or not, because if so, we will owe money.

3 Replies
DS30
New Member

We are military and got student loan money through the student loan repayment program and a misc w2. The w2 doesn't list a state. Is the money state taxable for Idaho?

It depends on your state of legal residence but if Idaho is your state of legal residence, then this W-2 information will need to be included on your Idaho resident state income tax return.

The Military Loan Repayment Program (LRP) system states that payments made under the LRP are considered taxable income in the year(s) that payments are made. So the amount listed under the state and local section of your W-2 will relate to your state of legal residence (SLR).Your SLR is usually your home of record – the state recorded by the military as your home when you joined the military (regardless of where you are stationed).

You will need to report this W-2 income on both your state and local (if applicable) income tax returns.

Please click Military Loan Repayment Program for more information.

ericmazzone
New Member

We are military and got student loan money through the student loan repayment program and a misc w2. The w2 doesn't list a state. Is the money state taxable for Idaho?

This still doesn't answer the question.  My state, Michigan, does NOT tax Military wages, but it IS listed on the W2 for the SLRP.  It SHOULD NOT be taxed, but the greedy leadership in the state under our last governor screwed the working people by taxing the people while giving handouts to corporations who don't contribute to the state.

MaryK1101
Employee Tax Expert

We are military and got student loan money through the student loan repayment program and a misc w2. The w2 doesn't list a state. Is the money state taxable for Idaho?

Active duty military pay is exempt from Michigan individual income tax. Regardless of where you earn the income if you are  a Michigan resident you are required to file a Michigan Individual Income Tax Return MI-1040.   TurboTax will walk you through to report the income correctly.
@ericmazzone

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