Random: Is military pay taxed?
- Thread starter SosaUK1987
- Start date
their pay is taxed federally. State tax is not determined by where you are stationed. Each solider has a state he has declared and he is taxed by that state's rate regardless of what state he is living in. For example, I was a TX resident and never paid state tax wherever I was stationed.
Yes, my pay was taxed when I served in the Air Force such as Social Security & Medicare taken out. State taxes are based on your home of record which was Tennessee for me at the time. If you are stationed for example at Travis Air Force Base in California but your home of record is in another state, you still pay home of record state's taxes. Even if you have an apartment in CA or live in base housing. Active Duty military pay is exempt in Kentucky & TN. Not exempt from federal taxes. There are combat zone tax exclusions if you are deployed. If you re-enlist in a combat zone, SRB selective re-enlistment bonus, then any bonuses you may get would be tax free if you meet the criteria.
www.militaryonesource.mil
www.myairforcebenefits.us.af.mil
revenue.ky.gov
www.military.com
Military Paycheck Deductions & Allotments | Military OneSource
Service members can learn about various military paycheck deductions and allotments that are listed on your Leave and Earnings Statement (LES).
www.militaryonesource.mil
Which states tax my active duty or reserve military pay?
As tax season looms near, it is a good time to look at the state income tax requirements for Airmen on active duty or reserve status. Tax laws often change, so be sure to revisit the tax requirements of your state of residency, and or any state from which you receive income each year before filing.
Military Exemptions - Department of Revenue
revenue.ky.gov
The Selective Reenlistment Bonus (SRB)
The Selective Reenlistment Bonus (SRB) is paid to enlisted members to encourage reenlistments in critical military skills.
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I'm assuming that changed after I got out of the Air Force in 95. I always had Kentucky as my home state and am pretty sure I paid KY state tax on my income my 4 years in. It's been nearly 30 years and my memory isn't as good as it once was so I could be remembering wrong. I do remember guys that were from Florida or had been stationed there and made it their home state that had no state tax coming out of their checks.Yes, my pay was taxed when I served in the Air Force such as Social Security & Medicare taken out. State taxes are based on your home of record which was Tennessee for me at the time. If you are stationed for example at Travis Air Force Base in California but your home of record is in another state, you still pay home of record state's taxes. Even if you have an apartment in CA or live in base housing. Active Duty military pay is exempt in Kentucky & TN. Not exempt from federal taxes. There are combat zone tax exclusions if you are deployed. If you re-enlist in a combat zone, SRB selective re-enlistment bonus, then any bonuses you may get would be tax free if you meet the criteria.
Military Paycheck Deductions & Allotments | Military OneSource
Service members can learn about various military paycheck deductions and allotments that are listed on your Leave and Earnings Statement (LES).
Which states tax my active duty or reserve military pay?
As tax season looms near, it is a good time to look at the state income tax requirements for Airmen on active duty or reserve status. Tax laws often change, so be sure to revisit the tax requirements of your state of residency, and or any state from which you receive income each year before filing.
Military Exemptions - Department of Revenue
The Selective Reenlistment Bonus (SRB)
The Selective Reenlistment Bonus (SRB) is paid to enlisted members to encourage reenlistments in critical military skills.
Awesome info guys. Answered my question perfectly. Thank you and thank you for your service.
I've been out for 10 years, but when I was in it worked like this.
Base pay was taxed for federal income tax and the state income tax on the state of my residence. You could declare residence for any state you lived in. So, when people would get stationed in Texas or Florida, they would usually become residents because there was no state income tax there. I was a Tennessee resident when I was commissioned, so I never paid state income tax.
Allowances for housing and food were not taxed at all. That made up probably 30-40% of my compensation. Hazardous duty pay was not taxed either.
When I was deployed, I don't think any of my income (including base pay) was taxed at all.
Base pay was taxed for federal income tax and the state income tax on the state of my residence. You could declare residence for any state you lived in. So, when people would get stationed in Texas or Florida, they would usually become residents because there was no state income tax there. I was a Tennessee resident when I was commissioned, so I never paid state income tax.
Allowances for housing and food were not taxed at all. That made up probably 30-40% of my compensation. Hazardous duty pay was not taxed either.
When I was deployed, I don't think any of my income (including base pay) was taxed at all.
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