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HMartin
New Member

I am active duty and have been living in Maryland all of 2016, why do I need to pay resident taxes for PA even though I don't live there

 
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AnnaB
New Member

I am active duty and have been living in Maryland all of 2016, why do I need to pay resident taxes for PA even though I don't live there

Your state of residency when you are in the military is whatever state is your Home of Record (HOR).  Your military wages are not taxable in the state you are stationed in; however, civilian wages would be.  If you have changed your State of Legal Residency, then your HOR would no longer be your resident state.

Pennsylvania does not tax active duty military wages earned by residents outside of the state.  When you enter your Form W-2, the follow-up screen has a box to check to indicate the wages are active duty military.  This exclusion should be included in the state preparation as well.  Any non-military income would be taxable as a resident.

Please refer to the article below for more information.

https://ttlc.intuit.com/replies/3302301


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3 Replies
AnnaB
New Member

I am active duty and have been living in Maryland all of 2016, why do I need to pay resident taxes for PA even though I don't live there

Your state of residency when you are in the military is whatever state is your Home of Record (HOR).  Your military wages are not taxable in the state you are stationed in; however, civilian wages would be.  If you have changed your State of Legal Residency, then your HOR would no longer be your resident state.

Pennsylvania does not tax active duty military wages earned by residents outside of the state.  When you enter your Form W-2, the follow-up screen has a box to check to indicate the wages are active duty military.  This exclusion should be included in the state preparation as well.  Any non-military income would be taxable as a resident.

Please refer to the article below for more information.

https://ttlc.intuit.com/replies/3302301


re2boys
Level 9

I am active duty and have been living in Maryland all of 2016, why do I need to pay resident taxes for PA even though I don't live there

While your active duty pay earned outside of PA is not taxable on a PA resident return, all other income is taxable by PA.  Assuming your home of record is PA.
AnnaB
New Member

I am active duty and have been living in Maryland all of 2016, why do I need to pay resident taxes for PA even though I don't live there

Great catch on the active duty pay not being taxable, I added a paragraph to my answer.  Thanks!
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