DanielV01
Expert Alumni

State tax filing

California exempts your military income when you are stationed outside of California.  However, for the My Info section, you must answer no to the question if you lived in another state and no to the question if you worked in another state, because, since you are active-duty, you are not considered to either live in or work in another state except California for tax purposes (your active duty cannot be taxed in any other state except California, which, as mentioned, will not tax your active-duty income while stationed outside California).

In addition, make sure that your W-2 is marked in TurboTax as active duty income.  (See screenshot #1 below)

If you take these steps, you will see the second screenshot on the second or third screen of your California return, and you are able to exempt your military wages for California.  Please note the following screenshots to assist you:  

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