Idaho Military Filing Information
Idaho law generally follows federal law regarding which type of military pay (active duty, disability, reserve and retirement) is
The residency of a qualified servicemember is presumed to be that member's military home of record.
The earned income of qualifying spouses of Idaho servicemembers is not subject to Idaho income tax due to the
Federal Military Spouses Residency Relief Act (Public Law 111-97) passed in November of 2009.
As a servicemember's spouse, you may qualify for this income tax exemption if:
• You are married to a servicemember who is serving in Idaho and has registered in the military with another state as a home
of record; and
• You have located to Idaho with the servicemember and you have the same domicile (permanent residence) as the servicemember's home of record.
NATIONAL GUARD MEMBERS CALLED TO ACTIVE DUTY IN A COMBAT ZONE
Idaho follows federal law and IRC to provide income tax relief for servicemembers on active duty in combat zones. Below
is a summary of how these laws affect Idaho National Guard members.
• All tax filing deadlines are extended for at least 180 days after your last day in a combat zone.
• No interest or penalty will accrue for nonpayment of individual income taxes while you are in a combat zone.
• If you are an enlisted soldier or warrant officer, you don't owe tax on military pay received while in a combat zone. If you are a commissioned officer, the monthly exclusion is capped at the highest enlisted pay, plus any hostile fire or imminent danger
• This federal law doesn't cover business tax returns, employment taxes, or sales/use tax obligations.
• You must write "COMBAT ZONE" and the date of deployment in red on top of the tax return you are filing.
For information see our Web site at tax.idaho.gov, or call toll free at (800) 972-7660 or (208) 334-7660 in the Boise area.
Idaho resident on active duty stationed in Idaho
If Idaho was your military home of record and you were on active duty stationed in Idaho, all of your military wages and all nonmilitary income, regardless of the source, are subject to Idaho tax. File Form 40.
Idaho resident on active duty stationed outside of Idaho
• You joined the armed forces while a resident of Idaho and Idaho is your military home of record; and
• You were on active duty for 120 or more consecutive days; and
• You were stationed outside of Idaho for all or part of the year.
You must report all of your income to Idaho. However, only military wages you receive while stationed in Idaho and all nonmilitary income, regardless of the source, is subject to Idaho tax. File Form 40 if you are single, or if you are married and your spouse is also a resident of Idaho.
File Form 43 if you are married and your spouse is a nonresident, part-year resident, or military nonresident of Idaho. Check the "Idaho Resident on Active Military Duty" residency status box for yourself. Check the applicable residency status box for your spouse.
Under the servicemembers Civil Relief Act, a servicemember will neither lose nor acquire a residence or domicile with regards
to his income tax as a result of being absent or present in a state due to his military orders. A qualified servicemember is
not a resident of or domiciled in Idaho solely as a result of being stationed in Idaho.
A servicemember includes any member of the uniformed services such as:
• A member of the armed forces which includes a member of the Army, Navy, Air Force, Marine Corps, or Coast Guard on active duty. It would also include a member of the National Guard who has been called to active service by the President of the United States or the Secretary of Defense of the United States for a period of more than thirty (30) consecutive days, for purposes of responding to a national emergency declared by the President and supported by federal funds.
• A member of the commissioned corps of the National Oceanic and Atmospheric Administration in active service; and
• A member of the commissioned corps of the Public Health Service in active service.
The safe harbor exception to being a resident of Idaho explained in the "Special-case Idaho Residents" does not apply to a qualified servicemember.
Nonresident on active duty stationed in Idaho
If your military home of record isn't Idaho and you were on active duty stationed in Idaho for all or part of the year, Idaho doesn't tax your military income. Nonmilitary income from Idaho sources is subject to Idaho tax. File Form 43 if your gross income from Idaho sources exceeds $2,500.
MILITARY PAY EARNED OUTSIDE OF IDAHO
If you are serving in the United States Army, Navy, Marine Corps, Air Force, or Coast Guard on active military duty that is continuous and uninterrupted for 120 days, your active duty military wages for service outside of Idaho aren't subject to Idaho tax. The continuous 120 days don't have to be in the same tax year. Enter your nontaxable military wages.
Do not include military wages earned while stationed in Idaho. Your wage and tax statement (W-2) doesn't show this amount separately and you may have to compute the amount of income earned outside of Idaho. You should see your unit of assignment or use your orders in making the computation. Include a copy of your worksheet.
National Guard or Reserve pay, including annual training pay, generally doesn't qualify as active duty pay unless you have been called into full-time duty for 120 days or more. If you are a commissioned officer of the Public Health Service or of the National Oceanic and Atmospheric Administration militarized by the President of the United States and attached to the armed forces, your active duty military wages earned outside Idaho qualify for this deduction. Enter these wages below.
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