If I am active duty military from Pennsylvania living out of, my state taxes are untaxible correct? When filing it says $907, but when ready to submit it says $0.

Military pay earned by PA residents on active duty inside the state is taxable by PA.

With this bill, military pay earned on active duty is not subject to PA local earned income taxes, regardless if earned inside or outside the state of PA.

You need to access a checkbox in the Pennsylvania interview if your active duty income is excludable:

• Go to State Taxes and either edit or start the PA resident return
• you will hit a screen Compensation Summary- edit your W2
• Click "Entire amount of this income is not taxable in PA" on the Verify This Income page

In Turbo Tax, you often have to verify a state tax treatment in the State interview. Not all state rules are recognized through the federal interview alone. PA has additional requirements to exclude active duty.

Please see the Original Post