It depends on your state of legal residence but if Idaho is your state of legal residence, then this W-2 information will need to be included on your Idaho resident state income tax return.
The Military Loan Repayment Program (LRP) system states that payments made under the LRP are considered taxable income in the year(s) that payments are made. So the amount listed under the state and local section of your W-2 will relate to your state of legal residence (SLR).Your SLR is usually your home of
record – the state recorded by the
military as your home when you joined the military (regardless of where you are
stationed).
You will need to report this W-2 income on both your state and local (if applicable) income tax returns.
Please
click Military
Loan Repayment Program for more information.
