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State tax filing
You may not be required to file in either state. However you will want to file in NY to get the taxes withheld, refunded.
Let's start with NC. If you are active duty military and military pay is your only pay, NC does not tax military pay of military members who are NC nonresidents only in NC due to military orders. If however you have other income besides military pay you will file as NC nonresident and only allocate that income to NC.
As for NY. As a military member who has NY as their home of record state but who is stationed out of state they may be treated as nonresident for tax purposes under the following circumstances (reference here and see below from page 5). If you are nonresident NY then you would not have any NY source income and are not required to file in NY.
You are considered nonresident:
1. You did not maintain any permanent place of abode in New York State during the tax year; and
2. you maintained a permanent place of abode outside New York State during the entire tax year; and
3. you spent 30 days or less (any part of a day is a day for this purpose) in New York State during the tax year.
However you do want to file as NY nonresident to get the taxes withheld refunded (see below steps on filing).
- In the "My Info" section indicate you are military and for all of 2022.
- Select NY as your home of record (resident state) on 31 Dec and you did not live in any other state.
- Continue and then scroll down to "Other State Income"
- If you have other income sources you should select "Yes" and select NC
- If not, select, "No"
- Enter your military W2 and in the follow on page "Uncommon Situation" select "Active Duty Military Pay"
- Complete the federal interview
- If you have NC income do that nonresident return first and only allocate to NC the nonmilitary income
- Next work the NY return.
- If you can be considered nonresident per above rules the "Change the residency" to Nonresident when asked
- Allocate zero income to NY
- Complete the interview
- This refund all taxes withheld for NY
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