Each individual state decides whether service members must file a return when they're stationed outside their resident state.
Since you are a resident of West Virginia, that has spent less than 30 days in the state, you should be filing a nonresident return for West Virginia. Your active duty pay should not be taxable on the nonresident return.
To claim the West Virginia exemption, you will file as a non-resident. Your nonresident state tax return should be filed first and then your resident state return (if applicable).
As you begin your West Virginia state tax return indicate that you want to change your residency and select "Special Nonresident". This will exempt your West Virginia military income from state tax.
Make sure to indicate in TurboTax that you are military.
In the "My Personal Info" section after you enter your name and occupation. You can click on "My Info" on the left and click on "Edit" next to your name. Scroll down to "I am a member or former member of the U.S. Armed Forces (active, reserve or National Guard)." Turbo Tax will ask follow-up question.
"Do any of these uncommon situations apply to this W-2?" will be asked on the screen after you enter your W-2, you can check the active-duty military box for the W-2.
After you finish your federal return, you'll automatically move to the State tab, where you'll see your nonresident state(s) listed in addition to your resident state.
On the Your State of Residence screen choose Out of State in the drop-down box the right of State of Residence.
Ensure your W-2 is properly coded as active-duty military. Once you click Continue after entering your W-2 in TurboTax you will see the Do any of these uncommon situations apply to this W-2? Click box next to Active-duty military.
Click here for more information for military service members from West Virginia.
Click here for additional information from the West Virginia Tax Division.
