Out of State Taxes for Military?

Dear Mike: CA exempts military pay in a combat zone. This is identified on your W2 as "Q" pay. Other wise the military pay is taxed as normal income in CA. Some states exempt any active duty pay. You have CA listed as your home of record.

Visit the Ca Franchise Tax Board web site for answers to this and other issues in CA.

Thanks for your service!!

This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent

CA does not tax the military pay of CA residents while they are stationed outside of the State of CA on PCS orders. Since you are stationed in FL, you are exempted from CA income taxes on your military pay. If you have any other income, that income IS taxed in CA.

For more information, see FTB Pub 1032: http://www.ftb.ca.gov/forms/2009/09_1032.pdf

Errol is on the right track, but missed one important point: FL is not an official combat zone. Although the drug war is being fought there, the term "combat zone" is more narrowly defined. Pay for duty in FL is not combat zone pay.

If you move your permanent residence to Florida, which has no state income tax, then your tax situation should improve.

if your home of record is Ca that is the state you pay taxes to

I cannot believe in the move that Ca was not retained on your pay slip

I don't believe you can change your home of record until you reup