Active duty military income earned outside of Pennsylvania by a Pennsylvania resident is not subject to Pennsylvania income tax. You will still file a resident return, a PA-40.
In the state section of TurboTax, when you come to the page titled “Compensation Summary”, click Edit beside your military income. The Verify This Income screen states that active duty military pay is not taxable in PA. Click box to left of Entire amount of this income is not taxable in PA. (*If you have already run through the PA return, when you get to this screen you may only see a box next to Make this income taxable in PA. - this box should NOT be checked.) (see screen shots below)
Note: Any interest, dividends, capital gains, rental income, etc. IS taxable by PA regardless of where you are stationed.
If you are filing electronically you must either fax or mail copies of your W-2 and military orders to:
Fax: 717-772-4193 or 717-787-2840
Use the Personal Income Tax Fax Cover Sheet DEX-93 to assist in timely posting of any information to your return.
Mail to:
PA Department of Revenue
Electronic Filing Section
P.O. Box 280507
Harrisburg, PA 17128-0507
Please make sure your Social Security number is on your orders.
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