|State Income Tax Guide for Military Members|
General Information: Military members who are legal residents are taxed using federal income tax rules. (Exception: However, if Form 37 is used, an exclusion of up to $1,000 of compensation for active-duty service or for service in the Reserve or N.D. National Guard is allowed. In addition, if stationed outside the U.S. for at least 30 days, an exclusion of up to $300 of compensation for active-duty service is allowed for each month [or fraction thereof] of service outside the United States. Field grade and general officers are not eligible for this exclusion.) Nonresident military members who receive nonmilitary income from an in-state source must file. Military income is used when computing tax on nonmilitary income. Military retired pay and SBP benefits are taxed, but an exclusion is allowed if Form 37 is used. Visit Web Site.