Good question - since you are a New York resident, you should file a New York tax return. You will be able to exclude your military pay from New York tax, but you have to file a NY return so the state knows you qualify for the exclusion. Remember that DFAS will be reporting your military pay to NY; they will be looking for a return from you.Until you file that return, NY doesn't know if you qualify for an exclusion or may be stationed in NY (no exclusion).
