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March 1, 2022
Question

State Return and military

  • March 1, 2022
  • 1 reply
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I am filing my state return for Pennsylvania and it says I owe money. The state of Pennsylvania does not tax active duty military members and I have that updated on my person information but it still says I owe. How do I fix this?

    1 reply

    March 1, 2022

    If you have other non-military income, there’s most likely nothing for you to fix.

    Pennsylvania law provides that compensation earned by residents of Pennsylvania in the armed forces, serving on federal active duty outside Pennsylvania, isn’t taxable on your Pennsylvania return. 

    However, you can still be taxed on other income that’s not excluded. 

    This is probably what you’re seeing.  If not, feel free to respond.

    March 5, 2022

    Having a similar issue.  My son (MD home of records) was active duty for all of 2021.  No other income.  The Navy is taking MD taxes out of his pay.  Turbo Tax says he still owes above what he already paid.  

    March 5, 2022

    I can think of two reasons why son your may owe Maryland tax @obx_kool.

     

    (1) Your son's MD withholding may be incorrect. You can file a new MD W-4.

     

    (2) The Navy may not be withholding local tax (if you son's hometown has local tax). Check boxes 18-20 to see whether any local tax was withheld.

     

    Then check Form 502 lines 28-33 to see if there is local tax.

     

    If there is no local tax withholding, but local tax on the return, contract the Navy to get that fixed.

     

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