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New Member
posted Jun 4, 2019 6:44:46 PM

How does military file while their residence is CA, but they are stationed out of CA? Assume no other income. The TT prompts are terrible and unhelpful

State of residence is CA.  I select I lived in another state - because I did, I was stationed there. Then it asked my previous state of residence... NO, I'm in the military, I don't have one.  The entire formatting year after year is jacked in this section!!! HELP

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1 Best answer
Expert Alumni
Jun 4, 2019 6:44:47 PM

California exempts your military income when you are stationed outside of California.  However, for the My Info section, you must answer no to the question if you lived in another state and no to the question if you worked in another state, because, since you are active-duty, you are not considered to either live in or work in another state except California for tax purposes (your active duty cannot be taxed in any other state except California, which, as mentioned, will not tax your active-duty income while stationed outside California).

In addition, make sure that your W-2 is marked in TurboTax as active duty income.  (See screenshot #1 below)

If you take these steps, you will see the second screenshot on the second or third screen of your California return, and you are able to exempt your military wages for California.  Please note the following screenshots to assist you:  

3 Replies
Expert Alumni
Jun 4, 2019 6:44:47 PM

California exempts your military income when you are stationed outside of California.  However, for the My Info section, you must answer no to the question if you lived in another state and no to the question if you worked in another state, because, since you are active-duty, you are not considered to either live in or work in another state except California for tax purposes (your active duty cannot be taxed in any other state except California, which, as mentioned, will not tax your active-duty income while stationed outside California).

In addition, make sure that your W-2 is marked in TurboTax as active duty income.  (See screenshot #1 below)

If you take these steps, you will see the second screenshot on the second or third screen of your California return, and you are able to exempt your military wages for California.  Please note the following screenshots to assist you:  

New Member
Jun 4, 2019 6:44:48 PM

This answer is so much more helpful.  Thank you for addressing the question prompts.  That type of guidance would be really helpful if Turbo Tax built that into their learn more buttons directly in the program so that customers don't have to go digging and posting questions.  Thanks so much Daniel!

Expert Alumni
Jun 4, 2019 6:44:50 PM

You are welcome.