sakers288
New Member

Why Does Turbo Tax say that I owe money to the state of WV when I was active duty military?

I was active duty military and turbo tax is saying I owe WV over 500 dollars in state taxes.  WV is my home of address and WV makes active duty members exempt from state taxes.  Whats going on?
AnnS7
New Member

Tax help for military filers

If West Virginia is your Home of Record, your active duty military pay while serving outside of WV is exempt from state taxes.

To claim the West Virginia exemption, you will file as a non-resident.  As you begin your WV return, look for the page titled "We've Recommended a Residency Status".  Indicate that you want to change your residency.  On the following page select "Special Nonresident (Form IT-140NRS)".  This will exempt your WV military income from state tax.

On the Tell Us Your State of Residence screen choose Out of State in the drop down box the right of State of Residence.

See screen shot below.

Note:  Ensure your W-2 is coded as active duty military.  Once you click Continue after entering your W-2 in to TurboTax you will see the Do any of these uncommon situations apply to this W-2?.  Click box next to Active duty military.  See Screen Shot below.

sakers288
New Member

Tax help for military filers

Special Nonresident is not working either. It says that I'd have to live in PA, VA, OH, or MD to get the Special Nonresident exemption.
AnnS7
New Member

Tax help for military filers

Please see above information and screen shot.
sakers288
New Member

Tax help for military filers

Thank you but choosing "out of state" just puts me back as a normal non resident and my money owed goes back up 500$.
AnnS7
New Member

Tax help for military filers

Did you code your W-2 as active duty military pay?
sakers288
New Member

Tax help for military filers

I just transferred the number over into TurboTax exactly as it is on my W-2. The employer code is the the department of defense number. Where else can it be coded?
AnnS7
New Member

Tax help for military filers

Please see Note above.