If your home of record was New
Jersey when you entered the military, you remain a resident of New
Jersey for income tax purposes, unless you qualify for nonresident status by
meeting all three of the following requirements:
1. You did not maintain a permanent home in New
Jersey; and
2. You did maintain a permanent home outside of New
Jersey (ships, barracks, billets, or bachelor officer quarters do not qualify);
and
3. You did not spend more than 30 days in New Jersey
during the taxable year.
If you meet the three conditions for nonresident status,
file Form DD-2058-1, State Income Tax Exemption Test Certificate, with your
payroll or finance officer to stop New Jersey income tax from being withheld
from your military pay.
In Turbo Tax, as you work through the state return, watch
for a page titled “Less Common Filing Situations”. Check the second box, “I need to verify my main form or residency selection”. Answer the questions related to military
residency, then on a following page enter your non-military wages in the
box titled “Wage Income Attributed to
New Jersey”. (If your only wages were military wages, enter zero.) This should exempt your military pay from NJ
tax.
