Your base pay, as reported on your DFAS W-2, will be federally taxable income. PA, however, exempts active-duty military pay if you were assigned outside PA.
Enter your DFAS W-2 exactly as you received it.
Active duty military pay is not subject to PA
personal income tax if earned by a PA resident
serving full-time active duty or federal active duty
for training outside the state. However, other
income earned, received or realized is taxable.
Service members must submit copies of military
orders assigning out-of-state active duty with
tax returns.
