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 your permanent home (domicile) was in New York State when you entered the military but you meet the conditions for nonresident status. (See Publication 361, New York State Income Tax Information for Military Personnel and Veterans), your military pay is not subject to New York State income tax.
•	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 there. You are a nonresident and your military pay is not subject to New York State income tax.

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 88, General information for New York State Nonresidents and Part year Residents.

These rules apply for both New York City and Yonkers income tax purposes

When do I have to file?

•	April 15, 2008
•	June 16, 2008, if you are stationed in a foreign country when your return is due
•	For combat zone extensions, see Pub 361, New York State Income Tax Information For Military Personnel and Veterans

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.

Military pensions

Pension payments received by retired military personnel or their beneficiaries are totally exempt from New York State, New York City, and Yonkers income taxes.

Publications
	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 IRS publication	Covers the special federal tax situations of active members of the U.S. Armed Forces
	Publication 525 - Taxable and Nontaxable Income IRS publication	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.

Links

	IRS (specific military page)
	State of New York Division of Military & Naval Affairs

Last Modified: February 27, 2008