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January 26, 2025
Question

Why do I have PA tax due if my income came from military pay where I was residing outside the USA?

  • January 26, 2025
  • 1 reply
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    1 reply

    January 26, 2025

    For Pennsylvania residents, non-active-duty military pay—such as drill pay for reservists, National Guard pay, and other forms of non-active-duty compensation—is subject to state income tax, regardless of where it's earned. See Revenue PA

     

    Therefore, if your tax liability arises from non-active-duty military income, even while working abroad, it is considered taxable by Pennsylvania.

    Employee
    January 27, 2025

    Here's a link from the PA tax website describing how to file a PA tax return if you had active-duty military pay while stationed outside PA:

    I am a PA resident, on military active duty stationed outside of PA. How do I complete my Personal Income Tax return to get a refund?

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