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I’m military. I just started terminal leave and am taking a civilian job. We will be living in Utah until we decide where to settle. Do I pay Texas or UT income tax?

Texas resident. In utah. Working in Denver until Nov then probably TX after.  Do I pay utah income tax on my civilian job income?  Military will be taxed for TX.
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8 Replies

I’m military. I just started terminal leave and am taking a civilian job. We will be living in Utah until we decide where to settle. Do I pay Texas or UT income tax?

Texsas has no state income tax.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

I’m military. I just started terminal leave and am taking a civilian job. We will be living in Utah until we decide where to settle. Do I pay Texas or UT income tax?

I understand Texas has no income tax.  Do I list my civilian job as Texas like my military pay for the next few months or do I list where I’m living?  Sorry. Added more in the additional comments

I’m military. I just started terminal leave and am taking a civilian job. We will be living in Utah until we decide where to settle. Do I pay Texas or UT income tax?

Your details are confusing.   First---there is no state income tax for TX, which you seem to know but you asked about paying tax in TX.

 

You say you are in Denver--in Colorado.  Are you in CO for the military?

 

You are---or will be?--working in Utah?   Where are you living while you work in Utah?  Is the civilian job in UT?

 

Please explain more clearly so someone can help.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

I’m military. I just started terminal leave and am taking a civilian job. We will be living in Utah until we decide where to settle. Do I pay Texas or UT income tax?

It would only let me use so many characters.  I added more in the additional comments.  I know I don’t pay in Texas.  


living in utah. Working in CO.  We are Texas residents so my military pay isn’t taxed.  

who do I pay state tax to for my civilian job?  Utah, CO or none to TX?

 

I’m military. I just started terminal leave and am taking a civilian job. We will be living in Utah until we decide where to settle. Do I pay Texas or UT income tax?

 

Yeah, we can have non-legal opinions about this, but your situation presented gets "iffy".  Might be a good idea to check for any help you can get with your base separation services.

____________

My non-legal take on this:

 

A person separating service has 180 days to re-establish their permanent residence in their original state...or in some new state any time in that 180 day period.  Thus you could be considered to be locked in as a TX resident .....unless you/your family decides to remain in UT beyond that 180 days.

 

BUT....For you, the military-separating person, the work in CO will be as a Civilian...and any time you physically work within CO, that pay will be subject to CO taxes...as a CO non-resident....unless you decide to permanently move and live in Colorado.   The civilian W-2 income doesn't become TX income, subject "TX non-taxes" until you physically reside and physically work within TX.

______________

Not sure UT has a stake in it unless you/your family continues to live in UT beyond ~6months (but don't push your time there) . IF other spouse works civilian job in UT, I have no idea if the MSRRA lock as TX resident for that spouse's W-2 continues for up-to 180 days or not.  That's way beyond what we might be able to deal/guess at in here.

___________

Read thru all of the following. It may have some helpful links for more expert advice:

Where to Live After the Military | Military OneSource

________

 

Other Note..Only the "Title" of your question has limited # characters...the additional information below the title....and comments don't   (well might be some limit, but we've seen a couple folks go on for a thousand or so words, so it would be pretty huge)    Don't write a book though...no one will bother reading it.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

I’m military. I just started terminal leave and am taking a civilian job. We will be living in Utah until we decide where to settle. Do I pay Texas or UT income tax?

thanks. Yeah base had no idea.  I’ve seen so many different things figured I’d try here.  Thanks again

TomD8
Level 15

I’m military. I just started terminal leave and am taking a civilian job. We will be living in Utah until we decide where to settle. Do I pay Texas or UT income tax?

As long as you're considered active duty, your military pay can only be taxed by your military SLR (State of Legal Residence).  If you take a side civilian job while still on active duty, that income would be taxable by the state in which you perform the civilian job.

 

After you separate from service, your income is taxable by your new civilian State of Residence.  If you work in a state other than your new State of Residence, then your income would also be taxable by the state in which you perform that work.  In that scenario, you'd be able to claim a credit on your resident state return for the taxes paid to the non-resident state, so you wouldn't be double taxed.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
Carl
Level 15

I’m military. I just started terminal leave and am taking a civilian job. We will be living in Utah until we decide where to settle. Do I pay Texas or UT income tax?

Typically, for A/D military pay, it's taxed based on your HOR as shown on your LES. Being on termial leave means that you are still active duty until your official retirement date and all pay received is received by you as a Texas resident. You are not a resident of any other state (such as CO) until such time that you establish that residency, which can include things like taking on a full time job in CO, among other things. Each state has different residency requirements. I would suggest you search the state website to see what requirements apply to you.
Additionally, if you don't meet the requirements to be a CO resident, then any money earned from a CO employer is subject to CO taxes and that would be filed as a non-resident. States have different residency requirements depending on the specific situation. For example, residency requirements for collage may be completely different from residency requirements for voter registration.  A descent place to start would probably be https://tax.colorado.gov/new-colorado-resident

 

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