Assuming you are PA resident and earned military income outside of PA, the military pay will be exempt from PA taxes. Here is the PA reference. Follow the steps below to exempt the military income.
- First verify in the MY Info section that you have answered "Yes" and indicated your military status in your personal information
- Next in the Wages & Income
- Edit the military W2 and verify on the follow on page asking about "Uncommon situations" you have selected "Active Military Pay"
- Finally, in the PA state interview
- Update the "Income & Adjustments" section
- On the "Compensation" page "Edit" the military W2
- "Make the amount non-taxable to PA"
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