Greetings,
I am a resident of Indiana, and maintain a household in the state where my family lives/works/goes to school. During Mon-Fri workweek and monthly training assemblies, I report to my unit of assignment 3 hours away with the Tennessee National Guard. I am a full time, Title 32 dual-status technician during Mon-Fri, and on the training weekends I am on Title 32 military training orders. (I stay with family rent-free during the time I am in Tennessee). I have not been mobilized during these tax seasons, but will likely mobilize in 2025 (that is a different question for a different time).
My finance unit stopped taking out Indiana state taxes on my weekend military duty pay for 2023 and 2024 under the new Indiana law. However in re-reading the IB27 and related press-articles, it also appears to affirm that dual status technician pay is also fully exempt. But it also seems to to suggest this only applies to members of Indiana National Guard and of other Reserve Components.
Q1: Does IB27 National Guard/Reserve exemption include Indiana Residents living in Indiana who are serving in other state's National Guard or Reserve units? (if not, then do we get any exemption?)
Q2: Does IB27 exemption include full time dual status pay?
Q3: If dual status tech pay is eligible, how should I code it in TurboTax to indicate military association? (we get separate W-2s from the Defense Pay Office, so do I just code both income sources as "active duty pay"?)
Q4: Is there a cap on the exemption, or is it fully exempt? (some articles appear to say $5,000 but that appears to be either dated or related to active duty pay).
**Note, understand any other non Reserve / Guard / military pay sources is still fully taxable as a resident of Indiana.
References:
https://www.in.gov/dor/files/ib27.pdf
https://www.dvidshub.net/news/460349/indiana-national-guard-soldiers-airmen-exempt-state-income-tax
