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I am in the military and a resident of Arkansas. I do not pay state taxes but I have a $ amount in box 16 on my W2. Is this correct?

 
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Employee Tax Expert

I am in the military and a resident of Arkansas. I do not pay state taxes but I have a $ amount in box 16 on my W2. Is this correct?

Yes, for tax year beginning January 1, 2014, service pay or allowance received by an active duty member of the armed forces is 100% exempt from Arkansas income tax.You still have to file a tax return, however, then indicate that it is not taxable.


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Employee Tax Expert

I am in the military and a resident of Arkansas. I do not pay state taxes but I have a $ amount in box 16 on my W2. Is this correct?

Yes, for tax year beginning January 1, 2014, service pay or allowance received by an active duty member of the armed forces is 100% exempt from Arkansas income tax.You still have to file a tax return, however, then indicate that it is not taxable.