His state of residence is California. Here is an FAQ that helps explain the State Military Rules: https://ttlc.intuit.com/replies/3300147
The good news is, however, that California still will return all of the taxes paid in. This is because California had a law change in 2016 that no longer taxes military income for the California resident stationed outside of California. Please see this website: https://www.ftb.ca.gov/individuals/faq/ivr/217.shtml
Make sure that his W-2 income is marked as Active Duty by doing the following on the W-2 screen:
-
Sign in to TurboTax Online, click take
me to my return, then pick
up where I left off.
- Click on Wages
and Income, then Edit on your W-2
- Scroll through the screens until Do any of these uncommon situations
apply? Make sure the Active
Military Box is
checked. (See screenshot below)
Also, when going through the California return, you will be asked how much of the income was earned stationed outside of California. You will put the appropriate amount (sounds like all of it).
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