Discussion:US Military FPO address
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Discussion Forum Index --> Basic Tax Questions --> US Military FPO address
Discussion Forum Index --> Tax Questions --> US Military FPO address
| 1 April 2009 | |
| What is the state of residence for US Military based overseas? Have client in the Navy who has had TN residency for years. Navy moved taxpayer to base overseas in 08. Her W-2 shows TN as state of residence but -0- state wages or tax. Meanwhile, the husband must have picked up a job on the base too... but his W-2 has no state listed, and -0- state wages or tax. What to do?... | |
| 2 April 2009 | |
| I've discovered on a military website that military personnel based overseas are NOT exempt from federal income tax (unlike Americans working abroad in the private sector).
Regarding my question above, however, can someone confirm my understanding that whether or not military based abroad pa state tax is determined by the state tax laws of their state of legal domicile? | |
| 2 April 2009 | |
| The state of residence is the person's state of record (the state the person lived in when he/she joined the military), unless they moved to another state and claimed residence within the new state. Military personnel are not exempt from federal taxes when stationed overseas, unless they are in a combat zone. You should be able to reference that info at the IRS website.
Most states do not require that their military personnl or dependents pay state tax if the person is stationed outside of their state. I believe this is the case for TN as well; but once again, the state should also be able to direct you to the correct reference. | |
| 2 April 2009 | |
| State of Residence is the state of record when the person joins the military. Owning a house, getting a drivers license, etc does not change the state of record. Military income is usually taxable only to the state of record. But, several state on my list don't give a clear enough answer without getting their instructions for me to say, Yes or No. Non military income would be taxable by both states with the state of record usually giving credit for taxes paid in the non resident state. Resident states taxing of military varies among the states with some taxing all, some taxing a portion and some taxing none. You will have to look to the resident state for that. | |
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