- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
State tax filing
No matter where you are stationed, you are considered a resident of NC.
While some states exempt Military pay for their residents, when they are stationed outside of their home state, NC does not. Thus, you just file your Federal and NC tax returns, as usual....nothing special. All your income is subject to NC taxation.
__________________________________
The exception to this is if you get deployed to an actual Combat zone. In that situation, your Military year-end W-2 will show the $$ from "Combat" pay in box 12 of the W-2 with a code Q, and box 1 of the w-2 will show as being reduced by a similar amount (or more if you have some other pre-tax deductions, like for a military TSP acccount). When this situation occurs, the software takes care of it automatically for NC once you enter your W-2 in the Federal section. Any of your other income (interest/dividends/off-duty job anywhere) will be subject to NC taxes, but is usually low enough that you won't get taxed...unless you have a Lot of other non-combat pay. or other income.