What if I'm in the military and also have a nonmilitary, civilian, or freelancing job?
If you're an active duty service member and also work a nonmilitary/civilian job or are freelancing, you'll probably have to file taxes as a nonresident in the state you're physically working in. Your state of legal residence (often the same as your home of record) will tax your military pay.
If you have to file a state tax return for your state of legal residence, most of the time, you can get a credit for the taxes paid on your nonresident return.
If you aren't sure of your military state of legal residence (SLR), we have guidance on how to determine it.
Example
Jo joined the military in Georgia, their state of legal residence. However, they're currently stationed in Virginia. On the weekends, Jo works at the local hardware store.
Jo will have to file a Virginia nonresident tax return and will only be taxed on their nonmilitary wages. They'll also file a resident state return with Georgia. The Georgia return will include both their military and nonmilitary wages and all other taxable income. Georgia allows a credit for the Virginia taxes paid on the Georgia state tax return.
