It depends. in reading this State of Indiana publication, in the section labeled Reserve Component or National Guard, " a member of a reserve component of the armed forces or a member of the National Guard is allowed a deduction from adjusted gross income for wages earned as a result of the member’s military service, including National Guard state active duty, regardless of mobilization, deployment, or federalization of the member’s National Guard unit. This includes wages earned as a military technician (dual status)" This answers question 1 and 2.
This would be considered active military pay for reporting purpose. Since the National Guard is a reserve component of the US Armed Forces, the $5000 limit does still apply. it does state in this reference source "Indiana resident Service members serving in an active or reserve component of the U.S. Armed Forces are eligible for an income tax deduction of $5000 for their military pay".
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