I need help making my income non taxable in NJ due to military service (on post housing/less than 30 days in NJ last year)

[clee3092]

I'm a VITA certified military member who is trying to file my income as nonresident income to get my money back. For some reason the software tells me that I am considered a nonresident but doesn't change my NJ state refund. Any ideas?

[AnnS7 · Accepted solution]

If your home of record was New Jersey when you entered the military, you remain a resident of New Jersey for income tax purposes, unless you qualify for nonresident status by meeting all three of the following requirements:

• You did not maintain a permanent home in New Jersey; and
• You did maintain a permanent home outside of New Jersey (ships, barracks, billets, or bachelor officer quarters do not qualify); and
• You did not spend more than 30 days in New Jersey during the taxable year.

In Turbo Tax, as you work through the state return:

1. Watch for a page titled “Less Common Filing Situations”.  Check the second box, “I need to verify my main form or residency selection”.  
2. On the Military Residency Verification screen indicate that you paid for a place outside of NJ and you did not spend more than 30 days in NJ.
3. Then on the Did you earn all of your wages in New Jersey? screen select No  - indicating you earned wages in another state. You will only enter your non-military wages in the box titled “How much did you earn in New Jersey?”. (If your only wages were military wages, enter zero.)   This should exempt your military pay from NJ tax. 

Note: For your active duty wages to carry to New Jersey correctly make sure your W-2 is coded correctly.  On the screen after your W-2 entry, click box to left of Active duty military on Do any of these uncommon situations apply to this W-2? screen.

See screen shots below.

[clee3092]

Thank you so much! I was missing the "did you earn all of your wages in New Jersey?" part.