Information for military personnel & veterans
Is my military pay subject to New York State and City income taxes?
- If you are a New York State resident and your permanent home (domicile) was in New York State when you entered the military but you were assigned to duty outside the state, you are still a New York State resident. Your military pay is subject to New York State income tax to the same extent it is subject to federal income tax.
- If you are a New York State resident required to file a return, use Form IT-201, Resident Income Tax Return.
- If your permanent home (domicile) was in New York State when you entered the military but you meet the conditions for nonresident status (of either Group A or Group B), your military pay is not subject to New York State income tax.
- If you meet the conditions for nonresident status, and are required to file a New York State income tax return, use Form IT-203, Nonresident and Part-Year Resident Income Tax Return.
- If your permanent home was not New York State when you entered the military but you were assigned to duty in New York State, you do not become a New York State resident even if you have a permanent place of abode here. You are a nonresident and your military pay is not subject to New York State income tax.
- If you are a nonresident and are required to file a New York State income tax return, use Form IT-203, Nonresident and Part-Year Resident Income Tax Return.
If you are a nonresident, other income that you receive from New York State sources (including your spouse's income) may be subject to tax. See Publication 361.
These rules apply for both New York City and Yonkers income tax purposes.
Military spouses qualifying under the Servicemembers Civil Relief Act (SCRA) may claim an exemption from New York State personal income tax withholding by filing Form IT-2104-E, Certificate of Exemption from Withholding, with their employer. SCRA provides certain tax relief for a military spouse when he or she is present in a state solely to be with a servicemember who is in that state so he or she can comply with military orders.
When do I have to file?
- April 17, 2018
- June 15, 2018, if you are stationed in a foreign country when your return is due
- For combat zone extensions, see Publication 361.
Combat zone pay
Military pay received for active service as a member of the armed services of the United States in an area designated as a combat zone is exempt from New York State, New York City and Yonkers taxes. You are entitled to a New York subtraction modification in computing your New York adjusted gross income for the amount of combat pay included in your federal adjusted gross income.
New York State organized militia
The New York State organized militia includes the New York Army National Guard, the New York Air National Guard, the New York Naval Militia, and the New York Guard.
If you are a member of the New York State organized militia, you are entitled to a New York subtraction modification in computing your New York adjusted gross income (AGI) if:
- Your federal AGI includes any pay received as a member of the New York State organized militia for performing active service within New York State due to:
- state active duty orders issued under New York Military Law section 6.1, or
- active service of the United States pursuant to federal active duty orders, for service other than training, issued under United States Code Title 10.
However, income received for regular duties in the organized militia (for example, pay received for the annual two-week training program) does not qualify for this subtraction modification.
Pension payments received by retired military personnel or their beneficiaries are totally exempt from New York State, New York City, and Yonkers income taxes.
- TSB-M-10(1)I, Military Spouses Residency Relief Act
- Publication 361, New York State Income Tax Information for Military Personnel and Veterans - Provides information about NYS resident and nonresident status and explains how to file your NYS income tax return
- Publication 3 - Armed Forces' Tax Guide - An IRS publication that covers the special federal tax situations of active members of the U.S.
- Publication 525 - Taxable and Nontaxable Income - An IRS publication that includes federal tax information on military pensions and veterans' benefits
- N-08-05, Important Information for Veterans Receiving Payments Under the Compensated Work Therapy Program - New York State and the federal government no longer tax benefit payments made under the Department of Veterans Compensated Work Therapy (CWT) program
- IRS (specific military page)
- State of New York Division of Military & Naval Affairs
- Form CO-308, Tax Basics: Military Personnel and Veterans
- Publication 1093, Veterans' Exemption Questions & Answers - Partial Exemption from Property Taxes in New York State