Question

I am Active duty navy and my home state is Arizona which we are suppose to be income tax free but I am being charged 324$ in state income tax. Did that change recently?

Forum|Forum|6 years ago
January 23, 2020
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TurboTax Deluxe Online

No, Arizona law for taxing military pay has not changed. Be sure to review the military questions in the "Federal interview" in the "My Info" section. Also, when completing the AZ interview be sure to put in the active duty military income that should be excluded when asked. Here is a document on Arizona taxation of military and/or military spouse income. It discusses various situations and the resulting tax treatment.

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