You can enter your physical address (where you are stationed) or you can enter your official Home of Record address (where you entered the military and where you are subject to state tax) -
address entries in the W-2 form will not affect your tax calculations.
What is important is to answer the Personal Information interview questions in such a way as to correctly identify your military residency status and state income tax obligations.
Active-duty military are considered to live in their state HOR no matter where they are stationed. Their active-duty pay is considered to be earned in their state HOR. When you complete the My Info Personal Interview:
Select your Home of Record state as your state of residence;
Answer "No" when asked if you "Lived in another state in 2020?" That question only applies if you changed your state of residence in 2020.
When asked if you "Earned money in another state?", answer "No" (unless the military member had non-military income in the state where they are stationed).
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