Deduction for Military Stationed Outside Ohio
All Ohio residents, including those serving in the military,
are subject to the Ohio individual income tax and school
district income tax, if they reside within a school district
that levies the tax. The military automatically withholds pay
for a servicemember's state of legal residence (e.g., home of
record from where the servicemember entered the military)
that is noted in his/her military personnel record. This does
not change unless a servicemember takes action to change it,
and this change is approved by the military. Service members
can only make such a change by submitting Department of
Defense form DD-2058. The approved form will be placed in
his/her military personnel record.
However, military servicemembers who are stationed
outside Ohio are eligible for the deduction of military pay
received for active duty service while stationed outside the
state, if the military pay is included in federal adjusted
gross income (see division (A)(24) of Ohio Revised Code
5747.01). Servicemembers must still file an Ohio
individual, and if applicable, school district income tax
return in order to qualify for the deduction. This deduction
applies to taxable years beginning on and after Jan. 1,
2007.
Under the November 2009 amendment to the
Servicemembers Civil Relief Act, please note that an
Ohio resident who accompanies his/her military servicemember
spouse to a duty station in another state remains subject to
Ohio income tax and school district income tax.
The term “stationed” refers to an Ohio resident
servicemember’s permanent duty station. For purposes of this
exemption, "permanent duty station" has the same meaning as
specified in Ohio Revised Code 5103.20, Article II,
Subparagraph (U), that is, it means the military installation
where an active duty servicemember – or, concerning this
exemption, an Ohio resident servicemember in the National
Guard or military reserve forces – is currently assigned and
is physically located under competent orders that do not
specify the duty as temporary. Periods of training in which a
servicemember, either individually or as part of a unit,
departs from his/her permanent place of duty and then returns
following the completion of the training, is not included in
the definition of “stationed.” However, periods of active
duty outside Ohio for purposes other than training, or
periods of training greater than 30 days outside Ohio, as
described below, qualify a servicemember for this exemption.
Examples of military pay and allowances that
do qualify for this deduction include the
following amounts, but only if the taxpayer receives the
amounts while he/she is stationed outside Ohio:
- Military pay and allowances received while a member of
the active component of the U.S. Armed Forces and assigned to
a permanent duty station outside Ohio.
- Military pay and allowances received while a member of
the active component of the U.S. Armed Forces, who is
assigned to a permanent duty station inside Ohio, only for
periods of duty outside Ohio for purposes other than
training, or periods of training greater than 30 days outside
Ohio.
- Military pay and allowances received while a member of
the National Guard or the reserve components of the U.S.
Armed Forces in an active duty status outside Ohio, or for
periods of training greater than 30 days, outside Ohio.
- Military pay and allowances received while a member of a
unit of the National Guard or the reserve components of the
U.S. Armed Forces under federal mobilization orders under
which the unit mobilizes for training at a non-Ohio location
followed by an operational deployment to any non-Ohio
location.
- Military pay and allowances received by cadets at the
U.S. service academies, specifically, the Military Academy,
the Air Force Academy, the Coast Guard Academy, and by
midshipmen at the Naval Academy. Cadets and midshipmen are
serving on active duty under the provisions of 38 United
States Code section 101 (21) and are eligible for this
deduction for the pay they receive while stationed at these
facilities to the extent that this pay is included in federal
adjusted gross income (line 1 on the Ohio income tax return,
IT 1040). However, this deduction is not available for pay
received for service in the Reserve Officer Training Corps.
Examples of military pay and allowances that do
not qualify for this deduction include the
following:
- Military pay and allowances received while a member of
the active component of the U.S. Armed Forces who is assigned
to a permanent duty station inside Ohio and who departs Ohio
for a period of temporary duty for unit or individual
training of 30 days or less (e.g., training exercises, basic
and advanced training courses, and additional skill training
courses).
- Military pay and allowances received while a member of
the National Guard or the reserve components of the U.S.
Armed Forces in an active duty for training status who
departs Ohio for a period of temporary duty for unit or
individual training of 30 days or less (e.g., unit annual
training, training exercises, basic and advanced training
courses, and additional skill training courses).
- Military pay and allowances received for service in a
combat zone because that pay is not included in federal
adjusted gross income (line 1 on Ohio form IT 1040).
- Service members eligible for this deduction may request
that the military exempt them from Ohio withholding
only during the period of their service outside the
state by submitting Ohio form
IT 4 MIL to their military finance office.
For taxable years 2006 and prior, the deduction described
above is not available.
Have questions?
Additional details concerning military tax issues are
discussed in our Frequently Asked
Questions - Military.
You can reach us by e-mail at Military-Info@tax.state.oh.us.
Our toll-free number for individual taxpayer inquiries is
(800) 282-1780, and the toll-free number for forms is (800)
282-1782.