Form Rev-612 Po - Military Pay For Pa Personal Income Tax Purposes (Page 2 of 2) in pdf

Is military pay taxable for PA personal

PA reservists and National Guard members

My employer pays the difference

ordered to active duty for training pursuant to

income tax purposes?

between my regular wages and military

Title 10 or Title 32 of the U.S. Code are on federal

pay when I am on duty. Is this taxable?

Military pay (including compensation for weekend

active duty. When performing active duty service

drills) earned within and outside Pennsylvania by

Yes. Pennsylvania taxes the difference between

outside Pennsylvania, such military pay is not

PA residents is subject to PA personal income tax

military pay and regular wages when an employer

subject to PA personal income tax.

as compensation.

compensates a service member.

Is service to the U.S. Public Health

Income received by a PA resident for all military

However, differential pay is not subject to PA

Service, National Oceanic and

service performed inside Pennsylvania – even if

personal income tax for service members on active

Atmospheric Administration (NOAA) or

on federal active duty or federal active duty for

duty in combat zones or hazardous duty zones.

U.S. Foreign Service considered federal

training – is fully taxable, unless for active military

How does my nontaxable military pay

active duty?

duty within PA for an emergency pursuant to 35

affect Tax Forgiveness?

PA C.S. Ch. 76.

No, a PA resident in the U.S. Public Health

Service, NOAA or U.S. Foreign Service is not on

Military pay not reported as income on a PA-40

Military pay received while on federal active duty

federal active duty as a member of the armed

personal income tax return should be included in

or federal active duty for training outside

forces. His or her income is subject to PA personal

eligibility income for Tax Forgiveness. However,

Pennsylvania is not taxable.

income tax.

hazardous duty pay or pay earned in combat

Generally, what determines whether

zones is not included in eligibility income for Tax

What is considered evidence of active

military pay is taxable for residents of

Forgiveness.

duty?

Pennsylvania?

How does the federal Military Spouses

Residents must provide proof they earned the

Active duty military pay is not subject to PA

military

income

excluded

from

taxable

Recovery Relief Act of 2009 affect state

personal income tax if earned by a PA resident

compensation outside Pennsylvania while on

taxation of income earned by a service

serving full-time active duty or federal active duty

federal active duty. The department will accept

member’s nonmilitary spouse?

for training outside the state. However, other

the authority section of the military orders

The Military Spouses Residency Relief Act (MSRRA)

income earned, received or realized is taxable.

directing the PA resident to federal active duty

permits a service member’s nonmilitary spouse to

Service members must submit copies of military

outside Pennsylvania as proof. When the authority

retain status as an out-of-state resident and

orders assigning out-of-state active duty with tax

for reporting to active duty is a federal statute –

source any nonmilitary compensation to the state

returns.

such as 32 U.S.C. §§316, 502, 503, 504 or 505 –

of residence under the following circumstances:

the department presumes federal active duty.

Is military service performed outside

• The service member must be in Pennsylvania

However, military pay is subject to PA personal

Pennsylvania subject to PA personal

in compliance with military orders.

income tax if the authority for reporting to active

income tax?

duty is a PA statute, such as P.S. §508 or §3102.

• The service member’s spouse must be in

No. Income received for military service outside

Pennsylvania solely to be with his/her spouse.

What do I need to submit with my tax

Pennsylvania while on active duty as a member of

• The service member’s spouse must have the

return to show I was on active duty

the armed forces is not taxable as compensation.

same domicile (legal residence) as the

outside Pennsylvania?

Therefore, when completing a PA personal income

service member.

tax return, PA-40, military taxpayers should not

Along with your PA return, submit copies of your

include military pay earned outside Pennsylvania

For detailed information on how MSRRA impacts

military orders and explain where you earned

on Line 1a. Such taxpayers should submit copies

state taxation of income earned by a service

active duty pay. Your W-2 form may indicate

of W-2 forms and military orders, along with an

member’s nonmilitary spouse, please review Tax

active duty, but the department will not process

explanation of the amount of income excluded

your return without proof you earned that active

Bulletin 2010-01 on the department’s website,

duty military pay outside of Pennsylvania.

from Line 1a.

Form Rev-612 Po - Military Pay For Pa Personal Income Tax Purposes Page 2

Related Articles

Related forms

Related Categories