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January 22, 2020
Question

WV Income tax on active duty military pay

  • January 22, 2020
  • 1 reply
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I have filed taxes for my husband for 3 years now while he has been active duty military and we have never run into being penalized for underpayment of state taxes before. We are stationed in GA but home of residence is WV, I thought WV didn't tax active duty military pay 

    1 reply

    January 22, 2020

    There are three areas of your tax return where you indicate that your husband's pay is active duty military pay. 

     

    The first one is under My Info. Please check that it shows Served in U.S. Armed Forces for him, by clicking on My Info on the left. If you don't see Served in U.S. Armed Forces under Other, you can click on Edit to the right and update his information.

     

    The next area is in the W2 section: 

    1. Click on Federal on the left.
    2. You will see Job (W2) first on the list, click Add or Update on the right.
    3. Click Edit on the line with his W2 form
    4. Make sure box 15 says WV, click Continue twice.
    5. On the screen that says, Do any of these uncommon situations apply to this W-2?, make sure the first choice, Active duty military, is selected.

    When you start the state return, you are given the option to change your residency for West Virginia. The wording is a bit tricky, but if you check all the notes here you will see this:

     

    "If, during 2019, you did not spend more than 30 days in West Virginia, and had income from a West Virginia source, you may be required to file an income tax return with West Virginia as any other nonresident individual, depending upon the type of income received."

     

    So, as long as you were not living or stationed in WV for 30 days or more, you should file as a non-resident. 

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