Having vehicles registered in the state of North Carolina and having lived there for two years, does NOT mean you are legally a resident of North Carolina (although I generally recommend that military members register their vehicles in their HOR state) .
Your DFAS Form W-2 should take care of keeping your mil pay out of NC's sights.
Active-duty military are considered to live in their
state HOR no matter where they are stationed. Their active-duty pay is
considered to be earned in their state HOR.
When you complete the My Info Personal
Interview:
- Select Colorado as your state of
residence;
-
Answer
"No" when asked if you "Lived in another state in
2017?" That question only applies if you changed your state of
residence in 2017.
- When
asked if you "Earned money in another state?", answer
"No" (unless the military
member had non-military income in the state where you are stationed).
You should not have to do anything else to qualify for the CO state tax exemption on military pay while stationed outside CO. From the 2017 Colorado Individual Income Tax Guide:
Active Duty Military
Residency is determined by your Home of Record, which
means you remain a resident of the state where you enlisted
unless you have of cially changed your Home of Record
with your branch of the military. Your Home of Record can be
found on your military Form DD214 or Leave and Earnings
Statement. We recommend you read publication FYI Income
21 if this applies to you. Please also read the “Military Service
Members — Special Filing Information” webpage on our
website for more details.
Those with a Colorado Home of Record should file CO return, even if stationed elsewhere. Those serving abroad
or outside the USA at least 305 days of the year may le as
a nonresident. You must mark the nonresident status-305
day exception box on the DR 0104PN.
