Yes, on the Oregon return the Out of State Active Military Pay box should be the same as the amount in Box 1 of your W-2. If Oregon is your State of Legal Residence on your LES (and often also your Home of Record), your active
duty military pay earned outside Oregon is not subject to Oregon state income
tax.
You'll only owe Oregon
tax if you had income from another Oregon source.
First, make sure you've marked your military W-2 as
active duty income:
- Once in your tax return, click on Federal Taxes tab and choose Wages & Income
- Click Edit next to your military W-2
- Click Continue on the W-2 entry screen
to get to the screen titled "Do any of these uncommon
situations apply to this W-2?
- Click the box to the left of Active duty military (see
screen shot below)
Second, as you walk through your Oregon return watch
for a screen titled, " Active Duty Military
and National Guard Reservist Pay”. The amounts in the Federal Total box and the Out of State Active Military Pay box should be the same and match the
amount in Box 1 of your W-2. (see screen shot)
