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July 6, 2020
Question

So being active duty military in a tax exempt state I should owe $0 for state taxes, why does turbo tax always say I owe thousands of dollars in state tax?

  • July 6, 2020
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Employee
July 6, 2020

Active duty servicemembers are taxed according to the rules of their SLR/HOR, not the rules of the state in which they happen to be stationed.

In TurboTax, be sure to enter your military State of Legal Residence as your "State of Residence".  Then, if your military pay was your only income, answer No to the question about having Other State Income.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.