Pennsylvania Military Pay for PA Personal Income Tax Purposes Brochure

Military Pay for PA Personal Income Tax Purposes Brochure
Brochure: Military Pay for PA Personal Income Tax Purposes (REV-612)
If I have a military address, how should
I enter my address on tax forms or
correspondence to the department?
When identifying a military address, please
include your APO or FPO address. Examples:
Kevin Taxpayer
Unit 2050 Box 4190
APO AP 96278-2050

Sharon Taxpayer
USCGC Hamilton
FPO AP 96667-3931

Extensions of Time to File for Combat
Zone and Hazardous Duty Service
Pennsylvanians serving in combat zones or
qualified hazardous duty areas designated by the
U.S. President are given the same additional time
to file state income tax returns and make
payments as is allowed for federal income tax
purposes. The deadline is automatically extended
to 180 days from the last day of service or the last
day of continuous hospitalization for injury
incurred in one of these areas. If you served in a
combat zone and are filing after the April due
date, print COMBAT ZONE at the top of your return
and include a copy of your military orders. Mail to:
Regarding: COMBAT ZONE
PA Department of Revenue
Bureau of Individual Taxes
PO Box 280600
Harrisburg, PA 17128-0600

For general tax questions:
Online Customer Service Center
www.revenue.pa.gov

MilitarY PaY
For Pa Personal
inCoMe tax PurPoses

Taxpayer Service & Information Center
Personal Taxes: 717-787-8201
Business Taxes: 717-787-1064
e-Business Center: 717-783-6277
1-888-PATAXES (728-2937)
Touch-tone service is required for this
automated, 24-hour, toll-free line.
Call to order forms or check the status
of a corporate tax account.
Automated Forms Ordering Message Service
1-800-362-2050
Services for Taxpayers with Special
Hearing and/or Speaking Needs
1-800-447-3020
Call or visit the Revenue district office
nearest you, listed in the government pages
of your local phone directory.

If filing electronically, fax or mail copies of military
orders, printing COMBAT ZONE at the top.
Fax orders to 717-772-4193 or mail them to:
Regarding: COMBAT ZONE
PA Department of Revenue
Electronic Filing Section
PO Box 280507
Harrisburg, PA 17128-0507

www.revenue.pa.gov

REV-612 PO (04-15)

Is military pay taxable for PA personal
income tax purposes?
Military pay (including compensation for weekend
drills) earned within and outside Pennsylvania by
PA residents is subject to PA personal income tax
as compensation.
Income received by a PA resident for all military
service performed inside Pennsylvania – even if
on federal active duty or federal active duty for
training – is fully taxable, unless for active military
duty within PA for an emergency pursuant to 35
PA C.S. Ch. 76.

PA reservists and National Guard members
ordered to active duty for training pursuant to
Title 10 or Title 32 of the U.S. Code are on federal
active duty. When performing active duty service
outside Pennsylvania, such military pay is not
subject to PA personal income tax.

My employer pays the difference
between my regular wages and military
pay when I am on duty. Is this taxable?

Is service to the U.S. Public Health
Service, National Oceanic and
Atmospheric Administration (NOAA)
or U.S. Foreign Service considered
federal active duty?

However, differential pay is not subject to PA
personal income tax for service members on active
duty in combat zones or hazardous duty zones.

Military pay received while on federal active duty
or federal active duty for training outside
Pennsylvania is not taxable.

No, a PA resident in the U.S. Public Health
Service, NOAA or U.S. Foreign Service is not on
federal active duty as a member of the armed
forces. His or her income is subject to PA personal
income tax.

Generally, what determines whether
military pay is taxable for residents of
Pennsylvania?

What is considered evidence of
active duty?

Active duty military pay is not subject to PA
personal income tax if earned by a PA resident
serving full-time active duty or federal active duty
for training outside the state. However, other
income earned, received or realized is taxable.
Service members must submit copies of military
orders assigning out-of-state active duty with
tax returns.

Is military service performed outside
Pennsylvania subject to PA personal
income tax?
No. Income received for military service outside
Pennsylvania while on active duty as a member of
the armed forces is not taxable as compensation.
Therefore, when completing a PA personal income
tax return, PA-40, military taxpayers should not
include military pay earned outside Pennsylvania
on Line 1a. Such taxpayers should submit copies
of W-2 forms and military orders, along with an
explanation of the amount of income excluded
from Line 1a.

Residents must provide proof they earned the
military income excluded from taxable
compensation outside Pennsylvania while on
federal active duty. The department will accept
the authority section of the military orders
directing the PA resident to federal active duty
outside Pennsylvania as proof. When the authority
for reporting to active duty is a federal statute –
such as 32 U.S.C. §§316, 502, 503, 504 or 505
– the department presumes federal active duty.
However, military pay is subject to PA personal
income tax if the authority for reporting to active
duty is a PA statute, such as P.S. §508 or §3102.

What do I need to submit with my tax
return to show I was on active duty
outside Pennsylvania?
Along with your PA return, submit copies of your
military orders and explain where you earned
active duty pay. Your W-2 form may indicate
active duty, but the department will not process
your return without proof you earned that active
duty military pay outside of Pennsylvania.
www.revenue.pa.gov

Yes. Pennsylvania taxes the difference between
military pay and regular wages when an employer
compensates a service member.

How does my nontaxable military pay
affect Tax Forgiveness?
Military pay not reported as income on a PA-40
personal income tax return should be included
in eligibility income for Tax Forgiveness. However,
hazardous duty pay or pay earned in combat
zones is not included in eligibility income for
Tax Forgiveness.

How does the federal Military Spouses
Recovery Relief Act of 2009 affect state
taxation of income earned by a service
member’s nonmilitary spouse?
The Military Spouses Residency Relief Act (MSRRA)
permits a service member’s nonmilitary spouse to
retain status as an out-of-state resident and
source any nonmilitary compensation to the state
of residence under the following circumstances:
• The service member must be in Pennsylvania
in compliance with military orders.
• The service member’s spouse must be in
Pennsylvania solely to be with his/her spouse.
• The service member’s spouse must have the
same domicile (legal residence) as the
service member.
For detailed information on how MSRRA impacts
state taxation of income earned by a service
member’s nonmilitary spouse, please review Tax
Bulletin 2010-01 on the department’s website,
www.revenue.pa.gov.