State Income Taxation of Military Personnel and United States Citizens Residing Outside of the United States

CRS Report for Congress
Received through t he CRS W e b
State Income T axation o f M ilitary Personnel
and United States Citizens
Residing Outside o f t he United States
Upda ted J uly 24, 2003
KerstinRoper
LawClerk
JohnLuckey
Legislative Attorney
American Law Division

Congressional Research Service ˜ The Library of Congress

State Income Taxation of M ilitary P ersonnel and United
States Citizens Residing Outside of the United States
Summary
This report ex amines and s ummarizes t he laws of the fifty stat es and t he District
of Columbia respecting t ax ation of i ncome of citizens domiciled within the state but
resi di ng abroad. It h as been prepared bi enni al l y for m any years.
This report i s d ivided into an introductio n and four sections. The introduction
includes a brief s ummary of p e r t i n e n t p r ovisions of Federal l aw, i ncluding 1) the
Soldiers' and Sailors' C ivil Relief Act (containing special provisions governing t he
treatment of members of t he military for domicile and s tate income tax purposes ) and
2) In ternal Revenue Code provision s g o v erning ex clusion o f i ncome earned i n
foreign countries, which may h ave an impact upon state t reatment of the i ncome o f
domiciliaries residing abroad.
Section I discusses t he six s tates (and t he District of Columbia) which have no
speci al credi t for forei gn t ax es p ai d o r s om e ex em p t i o n for i n com e earned abroad.
The d efinitions of domicile and residency, t he tax b ase and the p robable i ncome t ax
obligation of domiciliaries abroad are addressed. Two of t hese stat es do not tax
earned i ncome (Tennessee and New Hampshi re). Tennessee t ax es only i ncome from
stocks and bonds, and New H a m p s hire tax es d ividends and i nterest and
unincorporated businesses.
Section II focuses on those eleven s tates which provide a s tate income tax credit
for forei gn i n com e t a x p ai d. S t at ut ory l angu age i s s um m ari z ed for each of t h ese
st at es. In a num ber o f cases t h e s t at u t es p rovi de for a credi t for t ax es out si de t h e s t at e
( t o o ther states and t o foreign countries).
Section III s u mmariz es t he provisions of law i n t hose t wenty-six s tates t hat
ex clude some foreign s ou r c e earned i ncome from s tate tax ation, following federal
law o n t he subject.
S ect i o n IV l i s t s t h e s even st at es whi ch h ave n o i ncom e t ax .

Contents
In troduction ......................................................1
I. States withNoForeignTax Credit orExemptionProvision ...............3
Alabama .....................................................3
California ....................................................4
District ofColumbia ...........................................5
Mississippi ...................................................5
NewHampshire ...............................................6
NewJersey ...................................................6
Tennessee ....................................................7
II. States GrantinganIncomeTax Credit forForeign IncomeTax Paid ........8
Arizona ......................................................8
Hawaii ......................................................9
Indiana .....................................................11
Iowa .......................................................12
Maine ......................................................13
Massachusetts ...............................................15
Montana ....................................................16
NewMexico .................................................17
NorthCarolina ...............................................18
Oregon .....................................................19
Pennsylvania ................................................20
III. S t a t e s E x e m p t i n g In c o m e E a r n e d A b r o a d t o t h e S a m e E x t e n t a s F e d e r a l L a w
...........................................................21
Arkansas ....................................................21
Colorado ....................................................22
Connecticut .................................................24
Delaware ...................................................25
Georgia .....................................................26
Idaho.......................................................27
Illinois .....................................................28
Kansas .....................................................29
Kentucky ...................................................30
Louisiana ...................................................31
Maryland ...................................................32
Michigan ...................................................34
Minnesota ...................................................35
Missouri ....................................................36
Nebraska ...................................................37
NewYork ...................................................38
NorthDakota .................................................39
Ohio .......................................................40
Oklahoma ...................................................41
Rhode Is land ................................................43
SouthCarolina ...............................................44

Vermont ....................................................46
Virginia ....................................................47
West Virginia ................................................48
Wisconsin ...................................................49
IV. StatesHavingNoIncomeTax ...................................50
Alaska .....................................................50
Florida .....................................................50
Nevada .....................................................50
SouthDakota ................................................50
Texas ......................................................50
Washington .................................................50
Wyoming ...................................................50

State Income Taxation o f Military Personnel
and United States Citizens Residing Outside
of the U nited States
Introduction
This report ex amines and s ummarizes t he laws of the fifty stat es and t he District
of Columbi a respecting t he tax ation of i ncome of United S tates citizens domiciled
wi t h i n t h e s tate but residing abroad. The report i s divided into four substantive
sections. S ection I discusses t he law of s tates with no foreign t ax credit or ex em ption
provision. Section II analyz es t he laws of st at es whi ch grant an i n com e t ax credi t for
foreign i ncome t ax paid to a foreign country. In m a n y cases, t hese states merely
p e rm i t credit of any t ax es paid outside of the state, whether to other states or t o
foreign governments . S e c t i o n III descri bes t he laws of the s tates which ex empt
i n com e earned abroad t o t he sam e ex t ent as such i n com e i s ex em pt ed by federal l aw.
Section IV lists the seven stat es which have no i ncome t ax . S ince no income tax i s
imposed, t here can really be no substantive discus s i o n of the t reatment of United
Stat es citizens domiciled i n t h e s t at e but residing abroad. S tates which tax only
certain types o f i ncome, such as dividends and i nterest (se e d i s c u ssions of New
Hampshire and Tennessee), are discussed under t he general t ax provisions in Section
I.
The first three s ections are divided into a discussion of the d efi n itions of
domicile and res idency for s tate income tax purposes , t he tax bas e used by t he stat e,
and t he probable i ncome t ax obligation i n each o f these states for domiciliari es
residing abroad. In addition, special note i s m ade where state domicile or residency
is determined in whole or i n part by voting within the s tate and where speci al rules
apply t o military personnel.
In regard to the s pecial rules applicab le to military personnel, a number o f s tates
merely refer t o t he tax provisions of the S oldi ers ' and S ailors' C ivil Relief Act of
1940, presently found at 50 U.S.C. App. 574. Generally, t his s ection p rovides t hat
for s tate income tax purposes , an i ndividual does not lose domicile in a s peci fic s tate
solely "by reason of being absent t herefrom i n compliance with military or naval
orders . ..." Thesamelawalso providesthat, forstateincometax purposes, an
indivi dual does not acquire residence o r domicile solely because of location under
military orders. The Act further stat es t h at , w h e re an individual i s not deem ed to
reside or be domiciled i n a state, military income will be treated by that state as non-
resident income not earned within the s tate.
Section 911 of the Internal R evenue Code (IRC) permits United S tates citizens
who reside abroad to exclude from their gross income up to $80,000 of foreign
earned i ncome i n t ax year 2003 and a certain recogn iz ed amount for housing. This

ex clusion applies t o t ax payers living abroad who were present i n a foreign country
or countries for 330 days out of any 1 2 consecutive m onths. The housing cost amount
is the ex cess o f t he t a x p a ye r 's e x penses over a base housing amount. The base
housing amount is equal t o 1 6 p ercent of t he salary of a GS-14 government
employee. As of J a nuary 1, 2003, this salary is $72,381 so that the current base
housing amount would be $11,580.96. Housing costs provided by an employer m ay
also be ex cluded from t he gross i ncome o f t he employee. In line with this, IRC § 119
provides t hat l odgin g f u r n i s h ed in an overseas camp m ay be ex cluded from t he
employee's i ncome. It should b e noted that neither ex clusion i s applicable to wages
paid by the United S tates government even if the Federal em ployee is residing
abroad.
Most stat es, and the District of C olumbia, have sign ed agreem ents with the
Treasury Department which p rovide for t he withholding of state i ncome t ax es from
the p ay of service m embers. T he tex t of the s tandard agreement m ay be found at 31
CFR § 215.6 - 1 3 (2001). The following states do not have standard agreements with
the Treasury Department to withhold s tate income tax es from t he pay o f m embers of
t h e arm ed servi ces: A l aska, Fl ori d a, Neva da, S outh Dakota, Tex as, W ashingt on, and
Wyoming.
The i nformation contained i n t his report i s accurate through t he end o f t he 2002
l egi sl at i v e s essi on of each st at e.

I. States w i th No Foreign Tax C redit or E xemption P rovi sion
PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Al abama Domi cile, maintaining a perma nent place of abode within The entire net income of domiciliaries Residents -- Subj ect to State
the State, or s pending in the a ggr e ga t e more t han s even and r esidents as defined by t he statute. income tax on all income.
months of the year within the State. Ala. Code tit. 40, § 18- Al a. Code tit. 40, § 18-2.
2(7). Non-residents -- T axable on
Non-residents t axable on income from i ncome from property owned
Voting i n Alabama is a f actor considered by the courts in property owned or business t ransacted or business t r ansacted in
determining whether an indivi dual i s domiciled i n Alabama in Alabama. Al a. Code tit. 40, § 18- Al abama.
⁸⁹⁵f or t ax purposes. State ex r el. Rabren v. Baxter ,46Ala. 2(6).
App. 134, 239 So. 2d 206 (1970). Resident military personnel --
Resident military personnel t axable on Subj ect to State i ncome t ax on
ⁱ^ki/CRS-95-T he Alabama T ax Regulations state t hat military personnel en t i r e net income except i ncome all i ncome e xcept i ncome
^g/wdomiciled i n Alabama continue to be domiciliaries r e c eived for active combat duty. Ala . rec eived for active combat
^s^.orirrespective of t heir period of absence or actual place of Code tit. 40, § 18-3. duty.
^le^akresidence until proof of change of domicile or residence has
been ma de. If domicile has c hanged, t he burden of proof is Non-resident military personnel are Non-resident mi litary
^://wikion the t axpaye r t hough he owns no property, earns no not taxed on military pay r eceived personnel -- Subj ect to State
^h^ttpincome , a nd has no place of abode in A l a b ama. Ala. T a x. while stationed i n Alabama. income tax on non-military
Regs .,§ 810-3-2-.01. inco me earned within the
Wives of military personnel t axable on St at e.
income earne d within the State.
Military personnel t axable on non- Wives of military personnel --
military income earned within the T a xable on i nc o me earned
State. within the State.

Al l military retirement payments are
exempt from s tat e income taxation.
Al a. Code tit. 40, § 18-20

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Cal i for ni a Residents -- T he term “resident” for i ncome t ax purposes T he entire t axable income of a r esident R e sidents -- Subj ect t o s tate
includes: (a) every indivi dual who is in the state for other of the s tate. Cal. Rev. & T ax Code § income tax on all taxable
than a t emporary or t r a n s itory purpose, and ( b) every 17041(a). T he entire t axable income income. No n -residents --
indivi dual domiciled i n t he state who is outside the s tate for of a non-resident of the s tate which i s Subj ect to state i ncome t ax on
a t emporary or t ransitory purpose. If such person is absent d erived from sources within the state . all t axable income d erived
for a t l east 18 months under a n e mployment dated contract Cal. Rev. & T ax Code § 17041(b). from sources within the state.
they are not c o nsidered to be outside the s tate for a
temporary or t ransit o r y purposes (T his exception does not Non-resident military personnel are Resident military personnel --
apply t o t hose who receive over $200,000 in unearned not taxed on military income received Subj ect to state i ncome t ax on
income in a t ax year). Any i ndivi dual who is a r esident of while stationed i n California. Spouses all t axable income.
⁸⁹⁵the s tate continues t o be a r esident even t hough t emporarilyabsent from t he state. An indivi dual domiciled i n California of military person n el t axable onincome derived from s ources within No n -r e s i d e n t milit a r y
is absent from t he state f or a t e mp o r a r y purpose i f s uch the state. personn e l -- Subj ect t o s tate
ⁱ^ki/CRS-95-absence i s by r eason of ( 1) holding an elected or appointedoffice in the Federal Government or (2) worki ng on the s taff Gross i ncome s hall not inclu d e tax on non-mi l i t ary t axableincome derived from s ources
^g/wof an elected officer of the l egislative branc h o f t he U.S. compens ation f or military service within the state.
^s^.orGove rnme nt. Cal. Rev. & T a x Code § 17014. performed by a non-resident and
^le^ak attributable to a r esident spouse solely Wives of military personnel --
^://wikiEvery i ndivi dual who spend s i n the a ggr egate more t han by application of any community Subj ect to state i ncome t ax on
^h^ttpnine months of the t axable year within the s tate is presumed property l aw or rule. Cal. Rev. & T ax a l l t axable income derived
to be a r esident. Cal. Rev. & T ax Code § 17016 Code § 17140.5. from sources within the state.

Military haza rdous duty pay which i s
exempt under IRC § 112 is specifically
exempt from t he state i n c ome t ax.
Cal. Rev. & T ax Code § 17142.5

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
District of Residents -- T he term “resident” is defined as every T h e entire net income of residents. Residents -- Subj ect t o D.C.
Col umbi a i n d i vi dual domiciled within the District on t he last day o fthe t axable year, and every other indivi dual who maintains D.C. Code § 47-1806.1. income tax on net income.
a place of abode within the District f or more than 183 days T he District of Columbia i s precluded Non-residents -- Not subj ect
of the t axable year, whether domiciled i n t he District or not. f r om levyi ng a non-resident income to the i ncome t ax.
D.C. Code tit. 47, § 1801.4. Under an earlier Dis t r i c t of tax by Public Law 93-198, 602(a), 87
Columbia tax l aw, t he Supreme Court held t hat whether or Sta t . 813; D.C. Code § 1-233(a)(5); § Military personnel -- N ot
not a person votes where he claims domicile is highly 47-1801.4. subj e c t to income tax on
relevant, b u t by no means controlling on t he question pens i ons or annuities up t o
whether he i s domiciled i n t he District of Columbia, nor is See IRC § 104(a)(4). $3000. D.C. Code § 47-1803.2
⁸⁹⁵failure to vote elsewhere conclusive that domicile is in theDi s t r i c t . Di strict of Columbia v. Murphy , 3 1 4 U.S. 441
(1941); see also District of Colu m b i a v . Woods, 465 A.2d
ⁱ^ki/CRS-95-385 (1983).
^g/wSee Soldiers' and Sailors' Civil Relief Act.
^s^.or
^le^ak
^://wiki
^h^ttpM i ssissippi Residents and non-residents -- T he term “reside n t ” is T h e entire net income of residents. R e sidents -- Subj ect to tax on
defined as any person domiciled i n t he state and any other Miss. Code § 27-7-5. T he e ntire net their entire net income.
person who maintains a l egal or actual r esidence within the income of non-residents from s ources
state. Miss. Code § 27-7-3(e). within Mississip p i . Miss. Code § 27- Non-residents -- Subj ect t o t ax
7-15(3). on their entire net income
T he t erm “non-resident” i s defined as any natural person fr om sources within
whose domicile and place of abode is without th e s tate. Mississ i p p i e xcludes from gross Mississippi.
Miss Code § 27-7-3(f). T h e M ississippi Tax Regulations income : ( 1) the f irst $500 per month
define “legal resident” as one who ma i ntains a place of received as compensation f or active Military personnel -- Not
abode in Mississippi or who exercises l e gal r ights s uch as servi c e i n a combat zone or during subj ect t o i ncome t ax on: (1)
votin g. One can be a l egal resident though domiciled hospitalization as a result of such the f ir st $500 per month
else w here. Miss. T ax Reg. 1.27-7-3(5)(c); State Tax service a nd; (2) hazardous duty c ombat compen s a t i o n f o r active
Commi s s i o n of the State of Mississippi v. Earnest, 627 pay t o members of the armed f orces. ser vice i n a combat zone or
So.2d 313 (1993). Miss. Code § 27-7-15(4)(j ), (n). during hospitalization as a
result of such service and (2)
haza rdous duty c ombat pay.

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Mississippi T he M ississippi T ax Regulations state t hat members of the T he e ntire i n c o me of s pouses of Spouses of military personnel
(Continued) armed f orces who claim Mississippi as t h e i r state of legal military personnel of non-military pay -- Subj ect t o t ax on non-
residence/domicile are liable f or Mississippi income tax on from sources within Mississipp i i s military pay from sources
their i ncome. Non-resident me mber s of t he arme d f orces taxable. Miss. T a x Regs. § 1.27-7- within Mississippi.
stationed i n M is s i ssippi who r ealize i ncome from non- 15(34).
military sources within the state must file a non-r e s i dent
Indivi dual Income T ax R e turn. M iss. T a x Regs. § 1.27-7-

15(34).

⁸⁹⁵
New Taxes i nhabita n t s or r esidents on interest and dividend Interest and dividend i ncome over Inhabitants or r esi d ents --
income . N.H. Rev. Stat. Ann. § 77:3. $2,400 per year. N.H. Rev. Stat. Ann. Subj ect to tax on i n t e r est a nd
ⁱ^ki/CRS-95-Hampshi r e § 77:5. divi dends over $2,400.
^g/w
^s^.or No me ntion i s made of military
^le^ak personnel.
^://wiki
^h^ttp
New Jersey Residents -- “Residents” means ( 1) domicilia r i es unless Residents -- New J e rsey gr oss i ncome Resident -- Subj e c t to tax on
they maintain no permanent place of abo d e i n the s tate, as defined by s tatute. N.J . Stat. Ann. § their entire New J ersey gr oss
ma intain a perma nent place of abode elsewhere, and s pend 54A:5-1. income .
an aggr egate of not more th a n 3 0 days in the state or (2)
persons not domiciled i n New J e rsey who maintain a Non-resi dents -- Specified categories Non-residents -- Subj ect t o t ax
permanent place o f abode in the s tate and s pend an of New J ersey gross income to the on the s pecified c ategories of
a ggr egate of more t han 183 days in the s tate, unless s u c h extent they are earned, received or New J ersey gross income
indivi dual i s i n t he armed f orces of the United States. N.J . acquired from New J ersey sources. from New J ersey sources.
Stat. Ann.§ 54A:1-2(m). N.J . Stat. Ann. § 54A:5-8.
Military personnel -- Resident
- s ubj ect t o t ax on entire
income.

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
New Jersey N on-residents -- “ Non-resident” means a t axpaye r w h o i s New J ersey e xcludes from gross Non-r e sident -- not subj ect to
(Continued) not a r esident. N.J . Stat. Ann.§ 54A:1-2(n). income : ( 1) pensions and a nnuities f or tax on military income.
personal i nj u r ies or s ickness r esulting S ubj ect to tax on specifi e d
from active servi ce in the armed forces New J ersey gross income
of the United States; (2) compensation from New J ersey sources.
for servi ce in the armed for c e s of the
United States t o a n i ndivi dual not
domiciled i n New J ersey; ( 3)
mustering-out payments to members of
the armed forces of the United States;
⁸⁹⁵ and military pen s ions and s urvi vorbenefit payme nts. N.J . Stat. Ann. §§

54A:6-6, 6-7, a nd 6-26.

ⁱ^ki/CRS-95-
^g/w
^s^.orTennessee Persons in the state -- T he t erm “person” is defined as every (1) T he income of persons in the State Persons in the s tate -- Subj e ct
^le^aknat u r a l p erson, inhabitant, r esident ( any person who has a from d ividends on stock and interest to tax on dividends from stock
^://wikil e ga l domicile in T ennessee), and every person whomaintains a place of residence f or more than six months in o n bonds. T enn. Code Ann. § 67-2-102. and i nterest on bonds.
^h^ttpthe t ax year (regardless of what place s uch pers o n ma y Resident military -- Subj ect to
claim a s l egal domicile). T e nn. Code § 67-2-101(5). No interest or penalties may be tax on dividend s from stock
assessed against servic e member and i nterest on bonds.

serving i n combat zone or hospitalized
as result of inj ury in a combat zone.
T e nn. Code § 67-2-114(a).

II. States Granting an Income Tax C redit for Foreign Income Tax P aid
PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Ar i z ona Residents and certain non-residents -- T he term “resident” The entire t a x a ble income of every Residen t s -- Subj ect to tax on
includes: (1) every indivi dual who is in the state for other resident and t he entire t axable income entire net income with §§ 911-
than a t emporary or t ransitory p u r p ose, and (2) every of every non-resident which i s derived 912 and § 112 exclus i ons and
indivi dual domiciled i n t he state who is outside the s tate from sources w ithin the state. Ariz. the possibility of r e ceivi ng a
for a temporary or t ransit o r y purpose. Every i ndivi dual Rev. Stat. A n n. § 43-1011. Since credit for f oreign taxes paid.
who s pends in the a ggr egate more t han nine months of the Arizona computes i t s own t axable
taxable year within the state is presumed to be a r esident. income from f ederal adj usted gr oss Non-residents -- Subj ect to tax
⁸⁹⁵Ariz. Rev. Stat. Ann. §§ 43-104(14), 43-104(19). income , t he exclusions under §§ 911- on net i ncome deri ve d from
912 o f the IRC for i ncome from sources within Ar izona with
Se e S oldiers' and Sailors' Civil Relief Act. 50 U.S. C . sources without the United States are the possibility o f receivi ng a
ⁱ^ki/CRS-95-App. § 574. apparently adopted by i nto the credit for f oreign taxes paid on
^g/w computation of Arizona taxable such income .

^s^.or income . Any combat pay not already
^le^ak excluded by § 112 of the IR C i s
specifically excluded . Ariz. Rev. Stat.
^://wiki Ann. § 43-1022(19).
^h^ttp
Residents are allowed a credit only f or
taxes paid t o t he other s tate or country
on income derived from s ources within
that state or count r y w hich i s t axable
under t he foreign l aws without regard
t o the r esidence or domicile of the
recipient. No credit is allowed i f t he
other s tate or country allows residents
of Arizona a credit against t a xes
imposed by that state or country for
taxes paid t o Arizona. Ariz. Rev. Stat.
Ann. § 43-1071.

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Arizona Non-residents are allowed a credit
(Continued) against Arizona taxes on i ncome
derived from s ources within Arizon a
only i f ( 1) the f oreign country does not
t a x i ncome of r esidents of Arizona
derived f rom sources within that
countr y or (2) a llows residents of
Ar izona credit against t axes i mposed
by that cou n t r y on such income for
taxes paid t o Arizona. Ariz. Rev. Stat.
⁸⁹⁵ Ann. § 43-1096.
ⁱ^ki/CRS-95-
^g/wHaw a i i Residents and certain non-residen t s -- A “resident” is T he entire i ncome of all residents. T he Residents -- Subj e c t to tax on
^s^.ord e fined as every indivi dual who resides i n t he state f o r income received o r derived from all i ncome with § 911 and §
^le^akother t han a temporary or t ransitory purpose. Every property owned, personal s ervi ces 112 exclusions, a nd with t h e
^://wikiindivi dual who is in the state more th a n 2 0 0 days of thetaxable year in the aggr egate i s presumed t o be a r esident. p e rformed, t rade or business carriedon, a n d a n y and every other s ource in possibility of a credit f o rforeign t axes paid.
^h^ttpT his presumption may be overcome by evidence the s tate by a non-resident. Haw. Rev.
sat i sfactory t o t he Departme nt of T a xation t hat t he Stat. § 235-4(a), ( b). Because Hawaii Non-residents -- Subj ect t o t ax
indivi dual maintains a per ma nent place of abode outside computes its own t axable income from on income der i ve d f r om
of the s tate and i s i n t he state f or a t emporary or t ransitory federal adj usted gross i n come , t he sources within Hawaii, with
purpose. No person shall be deemed t o h a ve ga ined or exclusions under § 911 of the IRC for the possibility of a credit f or
lost a r esidence simply because of his presence or absence income from s ources without the foreign t axes paid.
in complianc e with military or naval orders. Haw. Rev. United St a tes are apparently adopted
Stat. § 235-1. into the computation of Hawaii t axable Military personnel -- Subj ect
in come. Section 912 exclusions are to tax o n military
specifically added back into Ha wa ii compe n s a t i o n with the
adj usted gr oss i ncome. Haw. Rev. Stat. exclusion of c ombat pay.

§235-7(b).

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Haw aii Residents are allowed a credit for t axes
(Continued) paid to an other state or country, which
are p aid on i ncome derived from
sources outside the s tate. T he credit is
not a llowed f or taxes paid on i ncome
excluded under § 911. Haw. Rev.
Stat. § 235-55(a).
Because Haw aii c omputes its own
taxable i ncome from f e d e r al adj usted
⁸⁹⁵ gr oss i ncome, the e xclusion under §112 of the IRC f or c ompensation
rec eived for active servi ce as a
ⁱ^ki/CRS-95- member of the armed forces of theUnited States f or any mont h d uring
^g/w whichsuch memberservedina
^s^.or c o mbat zone or was hospitalized a s a
^le^ak result of an inj ury incurred i n s uch
^://wiki service i s apparently incorporated into
^h^ttp the computation of Hawaii t ax able
income.
T he f irst $1,750 of income to members
of the ar med forces reserves is also
excluded from gross inc ome. Haw.
Rev. Stat. § 235-7(a)(7)

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
I ndi ana Residents and non-residents -- T he term “resident” is T he e n tire f ederal adj usted income of Residents -- Subj ect to tax on
defined a s a ny indivi dual who was domiciled i n t he state residents, with adj ustments not herein federal adj usted gross income
during t he taxable year, or any indivi dual who maintains releva nt. Ind. Stat. § 6-2.1-2-2. (above t he exclusions und e r
a permanent place of r esidence in the s tate an d s p e n ds §§ 911-912 of the IRC) with
mo r e than 183 days of the t axable year within the s tate. Sin c e Indiana c omputes its own the possibility of a credit f or
In d . S t a t . § 6 -3 -1 -1 2 . t a xable i ncome from f ederal adj usted foreign t axes paid.
gr oss i ncome, the e xclusions under §§
T he t erm “non-resident” i s defined as any person who is 911-912 of the IRC for i ncome from Non-residents -- Subj ect to tax
not a r esident of Indiana. Ind. Stat. § 6-3-1-13. sources without the United S t ates are on fed e ral adj usted gross
apparently adopted into the income derived from s ources
⁸⁹⁵See Soldiers' and Sailors' Civil Relief Act. c o mp u t a t i o n o f Indiana t axableincome . In d . Stat.§ 6-2.1-2-2. T he within In d i a n a , wi th thepossibility of a cred i t f or
f e deral a dj usted gross income of non- foreign t axes paid.
ⁱ^ki/CRS-95- residents derived from sources withinIndiana. Ind. Stat. § 6-2.1-2-2. Military personnel and
^g/w me rchant ma rine -- Subj ect t o
^s^.or Indiana also gives its residents a n d tax on military compensation
^le^ak non-residents a credit against Indiana with stated exclusions.

^://wiki income tax f or taxes paid t o another
^h^ttp state o r f oreign country on income
subj ect to tax i n Indiana. Ind. Stat. §§

6-3-3-3, 6-3-1-25.

Indiana a l l o ws a deduction of $2,000
per year from adj usted gr oss income
for i ndivi duals who a r e me mbers of
t he United States armed forces.
Military r e tirees over 60 years of age
may deduct $2,000 in retire ment or
survivors' ben efits. Ind. Stat. § 6-3-2-

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Iow a Residents and non-residents -- T he term “resident” is T he entire i ncome of t he residents Residents -- Subj ect to tax on
defined as any indivi dual domiciled i n t he state, and any defined as f ederal adj usted gr oss federal adj usted gross income
other i ndivi dual who maintains a permanent place of income, with certain adj ustme nts not (above t he exclusions und e r
abode with the s tate. Iowa Code § 422.4(15). T he term herein r e l e va nt. Iowa Code § 422.7. §§ 911-912 of the IRC) with
“non-resident” i ncludes a ll indivi du a l s who are not Since Iowa c omputes its own net the possibility of a credit f or
residents. Iowa Code § 422.4(10). income from f ederal adj usted gr oss foreign t axes paid.
income , t he exclusions under §§ 911-
T he Iowa t ax regulations state t hat unless t h e r e i s 912 of the IRC fo r i n c ome from Non-residents -- Subj ect to tax
evidence to the contrary, one will be p r esumed to be sources without the United S t ates are on fed e ral adj usted gross
domiciled i n t he stat e i f he or s he exercises t he right t o apparently adopted into the income derived from s ources
⁸⁹⁵vote, uses homestead credit o r military exemption, orothe r w i s e exercises his or her rights to suffrage. Iowa computation of Iowa net income . wi t hin Iowa, with t h epossibility of a cred i t f or
T a x Regs. subrule 38.1(9); I n t he M atter of Fox, 1996 T he net income of non-residents foreign t axes paid.
ⁱ^ki/CRS-95-Io wa T a x LEX IS 1996. derived from s ources within Iowa.Io wa Code §§ 422.5(j ) ; 422.8(2). Military personnel -- Subj ect
^g/wSee Soldiers' and Sailors' Civil Relief Act. to tax on military
^s^.or Iowa also provides a c redit a gainst compensat i on with stated
^le^ak Iowa tax f or taxes paid t o a nother s tate exclusions.

^://wiki or foreign country on inco me subj ect
^h^ttp to tax i n Iowa. Iowa Code § 422.8(1).
Since Iowa c omputes its o w n t axable
income from f ederal adj usted gr oss
income , t he exclusion under § 112 of
the IRC for compensation r eceived for
active s ervi ce as a member of t he
armed f orces of the U nited States f or
any month during which such me mber
served in a c ombat zone or was
ho s p i t alized as a r esult of an i nj ury
incurred i n such s e r vice is apparently
adopted into computation of Iowa
taxable i ncome. Iowa Code § 422.7

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Maine Residents and non-residents -- T he term “resident” is T h e t axable income of residents i s Residents -- Subj ect to tax on
defined as an i ndivi dual who is domiciled i n M aine; or defined as f ederal adj usted gr oss ta xable i ncome i n e xcess of
who i s not domiciled i n M aine, but ma intains a permanent income allocated to state sources with the e xclusions under §§ 911-
place of abode in Maine and spends in the aggr egate more c e r t a i n modifications n o t h e r e i n 912 o f the IRC with the
than 183 days of the t axable year in this state, unless he i s r e levant. Since Maine computes i t s possibility o f a r eduction of
i n the armed forces of the United States. Me. Rev. Stat. own t axa b le income from f ederal taxes f or taxes paid t o another
tit. 36 § 5102. adj usted gr oss i ncome, the e xclusions j urisdiction.
u nder §§ 911-912 of the IRC for
T he t erm “non-resident” i s defined as an indivi dual who income from s ources without the Non-residents -- Subj ect to tax
is not a r esident. Me. Rev. Stat. tit. 36 § 5102. United States are appa r ently adopted on the port i on of f ederal
⁸⁹⁵See Soldiers' and Sailors' Civil Relief Act. into the computation of M aine taxableincome. M e. Rev. Stat. tit. 36 § 5121. adj usted gr oss i ncome derivedfrom sources within M aine
with the possibility of a
ⁱ^ki/CRS-95- T he portion of f ederal adj usted grossinco me of non-residents derived from reductionintaxes fortaxespaid to another j urisdiction.
^g/w sources within the state. M e. Rev.
^s^.or Stat. tit. 36 § 5142. Military personnel -- Subj ect
^le^ak to tax on military
^://wiki A r esident i s allo we d a tax credit f or co mpensation with stated
^h^ttp taxes pai d t o another state or foreign exclusions.

country. M e. Rev. Stat. tit. 36 §

5217A.

If a t axpaye r i s r egarde d a s a resident
of Maine and another j urisdiction f or
the purp o s e of personal i ncome
taxation, the t ax assesso r s hall reduce
the t ax on that portion of t he taxpayer's
income which i s s ubj e c t ed to tax i n
bo t h j urisdictions, provi ded t hat t he
o t her t axing j urisdiction allows a
si milar r eduction. Me. Rev. Stat. tit.

36§5128.

Since M aine computes its own t axable
income from f ederal adj usted gr oss

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Maine the IRC for c ompensation r eceive d f or
(Continued) active s ervi ce as a member of t he
armed f orces of the United St ates f or
any month during which such me mber
served in a c ombat zone or was
hospitalize d a s a r esult of an i nj ury
incurred i n such s e r vice is apparently
adopted into the computa t i o n of
Maine t axable income. M e. Rev. Stat.
tit. 36 § 5121.

⁸⁹⁵
ⁱ^ki/CRS-95-
^g/w
^s^.or
^le^ak
^://wiki
^h^ttp

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
M assa- Residents and certain non-residents -- T he term “resident” T he t axable income of residents Residents -- Subj ect to tax on
chusetts or inhabitant is defined a s ( 1) any natural persondomiciled i n t he Commonwealth or (2 ) a non-domiciled defined as f ederal adj usted gr ossincome. However, M assachusetts does federal adj usted gross incomewithout the e xclusion under §
natural person who has a permanent place o f abode and not all o w t he exclusion of i ncome 911 of th e IRC for i ncome
spends over one hundred and e ighty t h r ee days in the from s ources without the United States derived from s ources without
Commonwealth. T he term “non-resident ” i s defined as in the computation of Massachusetts the United States. A credit f or
any natural person whose domicile is outside the taxable i ncome. Mass. Gen. L. Ann. taxespaidtoother states or
Commonwealth. M ass. Ge n. L. Ann. ch. 62, § 1(f). ch. 62 § 2(a)(1)(C). Massachusetts Canada or its provinc e s is
allows a credit f o r t axes paid t o other allowed.
T he Massachusetts Board of T ax Ap p e als has ruled t hat states or the Dominion of Canad a o r
⁸⁹⁵change of domicile from t he Commonwealth to a f oreigncou n t r y requires greater proof of intent to abandon any of its provi nces, with certainlimitations. M ass. Gen. L. Ann. ch. 62 Non-residents -- Subj ect to taxon the portion of f e d eral
domicile than a change of domicile between states of the § 6(a). adj usted gr oss i ncome derived
ⁱ^ki/CRS-95-United States. Farr v. Commissioner ,1Mass.B.T.A. 467(1932). T he portion of f ederal ad j usted gr oss from sou r c e s wi t hinMassachusetts.
^g/w i n c ome of non-residents derived from
^s^.orSee Soldiers' and Sailors' Civil Relief Act. sources within Massachusetts. Mass. Military personne l --
^le^ak Gen. L. Ann. ch. 6 2 § 5 A(a). Compensation paid t o military
^://wiki personnel f or active duty s hall
^h^ttp T he compensation paid t o mili t a ry be deemed to be from s ources
personn e l for active duty s hall be ot her t han s ources within the
deemed to be fro m s ources other t han Commonwealth.

sources within the Commo nwealth.
Mass. Gen. L. Ann. ch. 62 § 5A(c).

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
M ontana Residents and non-residents -- T he term “resident” is (1) T he entire adj usted gross income of Residents -- Subj ect to tax on
defined as a n y n atural person domiciled i n t he state or r e sidents defined as federal adj uste d federal adj usted gross income
who maintains a perma nent place of a bode within the gr os s i ncome with certain above t he exclusion of §§ 911-
s t ate even t hough t emporarily absent from t he state an d modifications not herein relevant . 912 of the IRC. Foreign c redit
who has not established a residence e l s e w here. M ont. S i n ce Montana defines its adj usted is allowed.
Code tit. 15 § 30-101(16). gr oss i n c ome i n t erms of federal
adj usted gr oss i ncome, the e xclusions Non-residents -- Subj ect t o t ax
See Soldiers' and Sailors' Civil Relief Act. u nder §§ 911-912 of the IRC for on net i ncome derived f r om
income from s ources without the sources within Montana.
United States are appa r ently adopted
⁸⁹⁵ int o the computation of M ontanaadj usted gr oss i ncome. Mont. Code tit. Military person n el -- Notsubj ect t o t ax on milit ary

15 § 30-111. compensation.

ⁱ^ki/CRS-95- (2) T h e entire earned i ncome of non-
^g/w residents derived from sources within
^s^.or Montana. Mont. Code tit. 15 § 30-131.
^le^ak
^://wiki (3) M ontana excludes r emuneration
^h^ttp paid for active servi ce as a member of
the armed forces of the United States
from t he definit i on of taxable wages
for r esidents. M ont. Code tit. 15 § 30-

116(2).

Residents are allowed a credit for t axes
paid to other states or f oreign
countries. M ont. Code tit. 15 § 30-

124.

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
New M exico Residents and non-residents -- T he term “resident” is (1) T he net i ncome of e ve ry resident Residents -- Subj ect to tax on
d efined as an i ndivi dual who is domiciled i n t he stat e defined i n t erms of federal t axable net income a bove t he
during a ny part of the t axable year. Any person who, on income with certain modifications not exclusions under §§ 911-9 12
o r b e fore the l ast day of the t axable year, changes hi s h e r ein relevant. Since New Mexic o of the IRC with the possibility
place of abode to a place without the s tate with the bona defines its tax base i n t erms of federal of a credit f or taxes paid t o
fide intention of continuing actually to abide permanently t a xable i ncome, the e xclusions under another s tate.
without the s tate is not a r esident. N. Mex. S t a t . § 7 -2 - §§ 911-912 of th e IRC for i ncome
2(S). derived from s ources with o ut t he Non-residents -- Subj ect to tax
United States are apparentl y adopted. on net i ncome derived f r om
T he t erm “ non-resident” i s defined as every i ndivi dual not N . M e x . S t a t . § 7 -2 -3 . sources within New M exico.
⁸⁹⁵a r esident of t he state. N. Mex. Stat.§ 7-2-2(Q). (2) T he net i ncome of e ve ry non- Military personnel -- Subj ect
See Soldiers' and Sailors' Civil Relief Act. resident derived from sources within to tax on militar y
ⁱ^ki/CRS-95- New Mexico. N. Mex. Stat. § 7-2-3.New M exico defines “state” t o i nclude compensa t i on with statedexclusions.

^g/w foreign c ountry. N. Mex. Stat. § 7-2-
^s^.or 2(U).
^le^ak
^://wiki (3) New Mexico also allows residents
^h^ttp a credit f or taxes paid t o another s tate.
N. Mex. Stat. § 7-2-13.
Since New Me x i co computes its own
taxable i n c ome from f ederal adj usted
gr oss i ncome, the e xclusion under §
112 of the IRC for c o mpensation
received f or active servi c e as a
member o f the armed forces of the
United States f or any month d u r ing
whichsuchmemberserved ina
combat zone or was h o s p i talized as a
result of an inj u r y incurred i n s uch
service i s apparently adopted into the
computa tion of New Mexico taxable
income. N.Mex.Stat.§7-2-2.

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Nor t h Residents and non-residents -- T he term “resident” is (1) T he net i ncome of r esidents as Residents -- Subj ect to tax on
Carolina defined as an i ndivi dual who is domiciled i n t he state f orother t han a temporary or t ransitory purp o s e . Absent defined under N . C . Gen. Stat. § 105-134.5(a). Beca u s e North Carolina net i ncome with the possibilityof a t ax credit for t axes paid to
other e vi dence, residence i n t he state f or over 183 days of defines its adj usted gr oss i ncome i n another state or foreign
the t axable year raises the presumption t hat t he indivi dual terms of f ederal adj usted gr oss i ncome, country.
is a r esident. N.C. Gen. Stat. § 105-134.1(12). the e xclusions under §§ 911-912 of the
IRC for income from sources without Non-residents -- Subj ect t o t ax
T he t erm “ non-resident” i s defined as any i ndivi dual who the United States are app arently on net i ncome derived f r om
is not a r esident. N.C. Gen. Stat. § 105-134.1(9). adopted into the computation of North sources within North Carolina.
Carolina adj usted gross income
⁸⁹⁵See Soldiers' and Sailors' Civil Relief Act. (2) T he net i ncome of non-resi d e nts Military personnel -- Subj ectto tax on military
for i ncome derived from s o u r ces compensation.

ⁱ^ki/CRS-95- within North Carolina. N.C. Gen. St at.§ 105-134.5(b).
^g/w
^s^.or North Caroli n a allows its residents a
^le^ak credit against t axes paid to another
^://wiki state or f oreign a country in certai n
^h^ttp instances. N.C. Gen. Stat. § 105-151.

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Or egon Residents and non-residents -- T he term “resident” is (1) T he entire t axable income o f Residents -- Subj ect to tax on
defined as: (1) an i ndivi dual who is domiciled i n t his s tate residents defi ned as federal t axable federal t axable income above
unless he ( A) ma intains no perma nent place of abo d e in income with certain modifications not the e xclusions under § 91 1 -
this state, (B) does maintain a permanent place of abode herein relevant. Since Oregon defines 912 of the IRC and wit h t he
elsewhere, and ( C) spends in the aggr egate not more than its own t axable income in terms of possibility of a c r edit f or

30 days in the t axable year in this s t a t e; or (2) an federal t axable income, t he exclusions foreign t axes paid.

i n d i vi dual who is not domiciled i n t his s tate, b u t under §§ 911-912 of the IRC for
maintains a permanent place of abode in this state and income from s ources without the Non-residents -- Subj ect to tax
spends in the a ggr egate more t han 200 days of the t axable United States are apparently on fed eral t axable income
year in this state, unless he proves t hat he i s i n t he state incorporated into th e c omputation of d erived from sources within
⁸⁹⁵only f or a t emporary o r t ransitory purpose. Ore. Rev.Stat. § 316.027(1)(a), (b). Oregon taxab l e i ncome. Ore. Rev.Stat. §§ 316.007, 316.037. Oregon.
Military personnel -- Subj ect
ⁱ^ki/CRS-95-A non-resident is an indivi dual who is not a r esident. Ore.Rev. Stat. § 316.022(4). (2) T he taxabl e i ncome of non-residents derived from sources within to tax on mili t arycompensation abo ve the f irst
^g/w Oregon. Ore. Rev. Stat. §§ 316.117, $3,000.

^s^.or 316.127.
^le^ak
^://wiki Or egon also gi ves t o r esidents a credit
^h^ttp against Oregon i ncome t axes for t axes
imposed o n the t axpayer by a nother
state. Ore. Rev. Stat. § 316.082.
A modified foreign t ax credit is
allowed. Ore. Rev. Stat. § 316.690.
( 3) Oregon subtracts from f ederal
taxable i ncome t he first $3,000 of
income compensation ( oth e r t han
pe nsion or r etirement pay) f or active
service i n t he Arme d Forces of t he
United States. Al l compensation f or
the i nitial and con c luding years of
active servi c e in the Armed Forces of
the Unit e d States i s deducted from
adj usted gr oss i ncome. Ore. Rev.

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Pennsylvani a Residents and non-residents -- T he term “resident” is (1) T he entire i ncome of r esidents Residents -- Subj ect to tax on
defined t o i nclude both ( 1) domiciliaries, u n l ess t he defined under Pa. Stat. tit. 72 § 7303. income with a credit f or taxes
domiciliary maintains no perma n ent place of abode paid to another state or foreign
within the Commonwealth, maintains a permanent place (2) T he income o f non-residents country on i n c o me a l s o
of abode outside the Commonwealth an d r e s ides within der i ved from s ources within subj ect t o t ax in Pennsyl va nia.
the Commonwealth for l ess t han t hirty days of t he taxable Pennsyl vania. Pa. Stat. tit. 72 § 7303.
year, and (2) non-domiciliaries maintaining a permanent Non-residents -- Subj ect t o t ax
place of abode within the Commonwealth for more t han Pennsyl va nia a llows residents a credit on income f r o m s o urces

183 days of the t axable year. Pa. Stat. tit. 72 § 7301(p). for t axes p a i d to another s tate or within Pennsyl vania.

foreign country on income also subj ect
⁸⁹⁵“Non-resident” i s defined as any i ndivi dual who is not aresident. Pa. Stat. tit. 72 7301(m) . to tax i n Pennsyl vania. Pa. Stat. tit. 72§§ 7301(t), 7314. Military personnel -- Subj ectto tax on military i n come
except for c ompensation f or
ⁱ^ki/CRS-95-See Soldiers' and Sailors' Civil Relief Act. Military compensation f or active dutyperf orme d outside of Pennsyl va nia i s active duty performed outsideof Pennsyl va nia.

^g/w exempt from t axation. Pa. Stat. tit. 72
^s^.or § 7303(a)(1).
^le^ak
^://wiki
^h^ttp

III. States Exempting I ncome E arned Abroad to the Same Extent as Federal Law
(Sections 911 - 912 of the I RC)
PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Ar kansas Residents a n d n on-residents -- T he term “resident” is T he entire i ncome of every resident as Residents-- Subj ect to stat e
defined t o i nclude any natural person domiciled i n t he state defined by t he statute. Ark. Code Ann. income taxation on f ederal
and any natural person who maintains a permanent place of § 26-51-201(a). adj usted gr o s s i ncome ( above
abode in the s tate and s pends in the aggr egate more t han s ix the e xclusions under §§ 911-
months of the t axable year within the s tate. Ark. Code Ann. The exclusion and allowan c e of IRC 912 of the IRC).
§ 26-51-102(9). §§ 911 & 912 as they were in effect on
⁸⁹⁵ J a nuary 1, 1989 are s pecifically Non-residents -- S u bj ect to
The Arkansas T ax Regulations state t ha t a d o micile does a d opted for purposes of computing state i ncome t a x o n all net
not end by ph ys i c a l absence a lone and i s presume d t o Arka nsas income tax. Ark. Code Ann. income from sources within
ⁱ^ki/CRS-95-contin u e until a new domicile is legally established. The § 26-51-310. the s tate as previously defined.
^g/wregulations contain a fact sheet listing t he various factors t o
^s^.orbe t a ke n i nto c onsideration i n determi ning whether a new T he entire net income of non-residents Resident military personnel --
^le^akdomicile has been established. T he elements o f a new from all property owned, an d from Subj ect to state i ncome t ax on
domicile on the f act sheet i nclude: voter regi stration and every business, trade or occupation entire i ncome e xcept f or the
^://wikiexercise of suffrage during t he last three elections, domicile carried on in Ar ka nsas. Ark. Code first $6,000 of service pay.
^h^ttpof birth, physical presence, e x pressed i ntention, family Ann. § 26-51-202(a). Combat pay i s e xempt a nd all
residence, duty c a u s i ng absence from Arkansas, state income in the year of death i n
licenses, location of s ubstantial r eal and property holdings, Resident military personnel t axable on combat is exempt.

community affiliations, business interests, bulk or necessary all i ncome e xcept f or the f i r s t $6,000
purchases, utility or telephone deposits, and local taxes and of service pay. Ark. Code Ann. § 26-
licenses . Ark. T a x. Reg., Art. 1.84-2002(10). T he 51-306(a)(1). Non-resident military
Arka nsas T a x Regulations state t hat a ny resident me mber of personnel t axa ble on net i ncome from
the armed forces who at t he time of t he induction i nto s uch non-military sources earned within the
servi c e was a r esident of t his s tate, continues t o be a state. Ark. Code Ann. § 26-51-306(b).
resident of this state, even though he or s he has been
inducted i nto t he armed s ervi ce outside of the s tate and does IRC §§ 112 and 692, conc erning
not return t o the state until after such servi ce is ended. A taxat i o n of c ombat pay and pay of
member of the armed service who at the time of i ndu c t i on military personnel f or the year t hey die
was a resident in any s ta t e o t h e r t han Arkansas i s f or in combat, are adopted and t hese types
income tax purposes a non-resident even though he was of income are not incl uded i n t he
inducted i nto t he service within Arkansas and he r emains in $6,000 exemption. Ark. Code Ann. §

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
the s ervi ce w i t h i n Arka nsas. Ark. T ax. Reg., Art. 1.84- 26-51-306(a)(4).

2010.

Col or a do Resident indivi duals and non-resid e n t s -- T he term T he entire f ede r al adj usted gr oss Resident indivi duals -- Subj ect
“resident” indivi dual means a natural person who maintains income of resi d e nt indivi duals, with to state i ncome t axa t ion on
a perma nent place of abode within the s tate and who spends certain modifications not herein federal adj usted gross income
in t h e a ggr e gate more t han s ix months of the t axable year releva nt. Colo. Rev. Stat. § 39-22-104. (above t he ex c l usions under
within the s tate. A “non-resident” i ndivi dual means an Since C olorado c omputes its own §§ 911-912 of the IRC).
indivi dual other than a r esident i ndivi dual. Colo. Rev. Stat. t a xable i ncome from f ederal adj usted
§ 39-22-103(8). gr oss i ncome, the e xclusions under §§ Non-resident indivi duals --
911-912 of the IRC for i ncome from Subj ect to state i ncome t ax on
⁸⁹⁵T he Colorado T ax Regulations state t hat domicile is a sources without the U n ited States and federal adj usted gross income
factual matter and that the i ndivi dual's i ntent controls. T he the e xclusion under § 1 12 of t he IRC attributable to sources within
Regulations also state t hat domicile, once established, is not for compensation r e ceived f or active Colorado.
ⁱ^ki/CRS-95-lost until a new domicile is esta b l i s h e d . Colo. Rev. Stat. § s e r v i c e a s a me mb e r o f t h e a r me d
^g/w39-22-103(8). for c es of the United States f or any Military personnel -- Subj ect
^s^.or mo nth during which such member to ta x on military pay with
^le^akSee Soldiers' and Sailors' Civil Relief Act. served in a combat zone are apparently stated exclusions.

^://wiki adopted i nto the computation ofColorado taxable i ncome. Colo. Rev.
^h^ttp Stat. § 39-22-104.
T he entire f ederal a dj usted gr oss
income of non-resident indivi duals
derived from s ources within Colorado.
Colo. Rev. Stat. § 39-22-109.
For purposes of determining i ncome
tax liabilit y, Colorado disregards the
time period during which an indivi dual
is a member of t he armed f orces of t he
UnitedStates:

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Col o r a do (1) commencing wi t h a declaration of
(Continued) war by Congress and e nding tw elve
months after t he termination of t h e
w a r; and ( 2) when an indivi dual i s
servinginanareadesignatedasa
combat zone and a period of one
hundre d a nd eighty days after such
service. Colo. Rev. Stat. § 39-22-610.
Colorado su b t racts r etirement pay,
pensions and a nnuities of members of
⁸⁹⁵ the armed forces to the extent i ncludedin federal adj usted gross income not
to exceed $ 24,000 in any one taxable
ⁱ^ki/CRS-95- ye ar. Colo. Re v. St at. § 39-22-104(f).

^g/w
^s^.or
^le^ak
^://wiki
^h^ttp

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Connecticut Residents -- “Resident” means ( 1) domiciliaries unless t hey T he entire f ederal adj u sted gr oss Resident indivi duals -- Subj ect
maintain no permanent place of abode in the s tate, maintain income of resi d e nt indivi duals, with to state i ncome t axation on
a perma nent place o f abode elsewhere a nd spend i n t he certain modifi cations not herein federal adj usted gross income
aggr egate not mo r e than 30 days of the t axable year in the releva nt. Conn. Gen. Stat. Ann. §§ 12- (above t he exclusions u nder
state and (2) non-domiciliaries who ma i n t a i n a permanent 700 and 701(a)(19) & ( 20). §§ 911-912 of the IRC).
place of abode in the s t a te and are in the state for an
aggr egate of more t han 183 days . Conn. Gen. Stat. Ann. § Since C o nnecticut computes its own Non-resident indivi duals --
12-701(a)(1). taxable i ncome from f ederal a d j usted Subj ect to state i ncome t ax on
gr oss i ncome, the e xclusions under §§ federal adj usted gross income
“ N o n -r e sident” i s defined as any i ndivi dual who is not a 911-912 of the IRC for i ncome from attributable to sources within
⁸⁹⁵resident. Conn. Gen. Stat. Ann. § 12-701(a)(2). sources withou t t he United States a ndthe e xclusion u n der § 112 of the IRC Connecticut.
See Soldiers' and Sailors' Civil Relief Act. for compens ation r eceived f or active Military personnel -- Subj ect
ⁱ^ki/CRS-95- service as a member of the armedforces of the United States f or any to tax on mili tary pay withstated exclusions.

^g/w month during which such member
^s^.or served in a combat zone are apparently
^le^ak adopted into the compu t ation of
^://wiki Connecticut taxable i ncome. Conn.
^h^ttp Gen. Stat. Ann. § 12-700.
T he ent ire f ederal adj usted gr oss
income of non-resident indivi duals
derived from sourc es within
Connecticut. Conn. Gen. Stat. Ann. §

12-700.

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Del a w a r e Resident indivi duals a nd non-resident indivi duals. A T he entire t axable income o f every R e s i dent in d i vi d u a l s --
“resident i ndivi dual” is defined as one who i s domiciled i n r esident indivi dual defined as such S u b j e c t t o s t ate i ncome
the s tate for any part of the t axable year to the extent of t he i ndivi dual's f ederal adj usted gr os s taxation on f ederal adj usted
period of such domicile; or maintains a place of abode in income with certain modifications not gr oss i ncome ( above t he
the s tate and s pends more than 183 days of the t axable year h e rein relevant. Del. Code Ann. § § exclusi o n s under §§ 911-912
in the s tate. Del. Code Ann. § 30-1103. 30-1102 and 30-1105. of t h e IRC) .
A “ non-resident indivi dual” is defined a s one who i s not a Since Delaware c omputes its own Non-resident indivi duals --
resident indivi dual of t he st ate. Del. Code Ann. § 30-1104. taxable i ncome from f eder a l adj usted Subj ect to state i ncome t ax on
gr oss i ncome, the e xclusions under §§ federal adj usted gross income
⁸⁹⁵T he Delaware Superior Court has held that an indivi d ualwho ha d move d t o Washington, D.C. to take employme nt, 911-912 of the IRC for i ncome fromsources w i t hout the United States and attributable to sources withinDe l a wa r e .
but who c ontinued t o vote i n Delaware had abandoned his the e xclusi o n under § 112 of the IRC
ⁱ^ki/CRS-95-Delaware domicile. T he court f ound that the voting, whichi t t e r med "illegal," did not prove Delaware domicile. for comp ensation r eceived f or actives e r v i c e a s a me mb e r o f t h e a r me d Military perso n nel -- Subj ectto tax on military
^g/wMitchell v. Delaware State Tax Commissioner , 42 A.2d 19 forces of the United States f or any c o mpensation with stated
^s^.or(Del. Supr. Ct. 1945). month during which such member exclusions.

^le^ak served in a combat zone are apparently
^://wikiSee Soldiers' and Sailors' Civil Relief Act. ad o pted i nto t he computation of
^h^ttp Delaware taxable i ncome.
T he t axable inco me of a non-resident
indivi dual defined as that part of his
federal adj usted gross income derived
from s o u r ces within the State. Del.
Code Ann. § 30-1102(a).

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Geor gi a Residents and taxable non-residents -- T he term “resident” T he t axable net i ncome of all residents Residents -- Subj ect to tax on
is defined t o i nclude "legal residents" of th e s t a t e on defined as f ederal adj usted gr oss federal adj usted gross income
December 31 of t he taxable year in question, persons income less items n o t herein relevant. (above t he exclusions und e r
residing in the s t a t e on a " more or less regular basis" on Si nce Georgia compu t es its own §§ 911-912 of the IRC).
December 31 of t he taxable year under c onsideration, and t axable net income on the basis o f
persons residing in the s tate in the aggr egate f or 183 days or fede r a l a dj usted gross income , t he T a x a b l e non-r e s i d e n t s --
part-days f or the t axable year. Ga. Code § 48-7-1(10). exclusions under §§ 911-912 of t h e Subj ect to tax on net taxable
IRC for income from sources without income d erived from certain
“T axable non-residents” are def ined to include the t he United States are apparently spec i f i e d a c t i vities within
f ollowing: ( 1) every i ndivi dual who is not otherwise a adopted into the comput a tion of Ge or gi a .
⁸⁹⁵resident of Georgi a f or inc o me t a x purposes and whoregularly, and not casually or intermittently, engages within Georgi a t axable net i ncome. Ga. Code§ 48-7-27. Military person n el -- Subj ect
Georgi a, hims elf o r b y means of employees, a ge nts or to tax as r esidents on federal
ⁱ^ki/CRS-95-partners, i n emp loyment, trade, business, professional, orothe r a c t i vity for f inancial gain or profit, including the T he f ederal exclusion under § 1 1 2 o fthe IRC for compensation r eceived for adj usted gr oss i ncome l e s sspecified items.

^g/wrental of real or personal property l ocated within Georgi a or active s ervi ce as a member of t he
^s^.orfor use within Georgi a; and ( 2) every i ndivi dual who is not armed f orces of the United States f or
^le^akotherwise a r esident of Georgia for i ncome t ax purposes and any month during which such me mber
^://wikiwho s ells, e xchanges or ot h e r wise disposes of tangible served in a c ombat zone or was
^h^ttpproperty which at that t i me has a taxable situs within hospitalized as a r esult of an i n j ury
Georgi a, or of intangible property which has acquired a t t he incurred i n such servi ce is specifically
time a b u siness or commercial situs within Georgi a. adopte d into the computation of
"T axable non-resident" as defined herein does no t i nclude Ge orgi a t axable income . Ga. Code §
a l egal resident of another s tate whose o n l y activity for 48-7-36.
finan c ial gain or profit i n Georgia consists of performing
services in Georgi a f or an employer where t he remuneration
for s uch s ervi ces does not exceed five percent of t he income
received by s uch person f or performing s ervi ces i n a l l
places during a ny taxable year; Ga . Code § 48-7-1(11)(A)
&(B).
See Soldiers' and Sailors' Civil Relief Act.

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Idaho Residents, and part-year resident. T he term “res i d e n t ” is T axable i ncome of r esidents defined as Residents -- Subj ect to tax on
defined a s a ny indivi d u a l who during t he taxable year has taxable i ncome under § 63 of the IRC. federal t axable income (above
been domiciled i n Id a h o o r has maintained an abode in Since Idaho computes its taxable the e xclusions under §§ 911-
Idaho f or the e ntire t ax ye ar and s pent more than 270 days i n come from f ederal taxable i ncome , 912 of the IRC).
of that year in t he s tate. An i ndivi dual will not be § § 911-912 of the IRC for i ncome
considered a r esident i f d u r i ng a 15 month period he i s from s ources without the United States Non-residents a nd part-year
absent from t he state f or at least 445 days , i s not present i n are apparently adop ted i nto t he re s i dents -- Subj ect to tax on
the s tate for more t han 60 days, did not maintain an abode computation of Idaho taxable i ncome. federal taxable income
for his family i n t h e state, was not absent to serve as an Ida. Code 63-3022. attributable to certain sources
elected official, and did not claim Idaho as his t ax home f or within Idaho.
⁸⁹⁵federal i ncome t ax purposes. Ida. Code § 63-3013. T he t axable income of non-resi d e ntsand part-year residents t o t he extent it Military personnel -- Not
T he t erm “part-year resident” i s d e f ined as an indivi dual is attribut a ble to certain specified subj ect to tax on active duty
ⁱ^ki/CRS-95-who has change d his domici l e either to or from Idaho andwho has re s i d e d i n Idaho for ove r a day. Ida. Code § 63- activities within Idaho. Ida. Co d e §63-3026A. compensation f or servicesperformed outside of the s tate.

^g/w3013A .
^s^.or Not s ubj ect t o t ax on active duty
^le^akT he t erm “non-resident” i s defined as any i ndivi dual who is compensation f or services p e rformed
^://wikinot a r esident or part-year resident. Ida. Code § 63-3014. o u t s i de of the s tate, Ida. Code § 63 -
^h^ttp 3022(h), or r etirement benefit s , Ida.
See Soldiers' and Sailors' Civil Relief Act. Code § 63-3022A(4).

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Illinois Residents, part-year residents -- T he term “resident” is T he entire f ederal adj u sted gr oss Residents -- Subj ect to tax on
defined as any indivi dual who is in the s tate for other than income of residents, with cer tain federal adj usted gross income
a t emporary or t ransitory purpose during t he taxable year or modifications not herein releva nt. (above t he exclusions und e r
who i s domiciled i n t he state, but is absent from t he state f or Since Il linois computes its own base §§ 911-912 of the IRC).
a t emporary or t ransitory purpose during t he taxable year. income from f ederal adj usted gr oss
35 ILCS § 5/1501(20). income , t he exclusions under §§ 911- Non-residents a n d part ye ar
91 2 o f t he IRC f or income from re s i dents -- Subj ect to tax on
T he t erm “part-year r e s i d e nt” i s defined as an indivi dual sources without the United States a r e all i ncome attributable to
who became a r esident during t he taxable year or ceased to apparently adopt e d into the certain activities within
b e a r esident during t he taxable year. 35 ILCS § 5/1501 computation of Illinoi s base i ncome. Illinois.
⁸⁹⁵(17). 35 ILCS § 5 /203. Military person n el -- Illinois
T he t erm “non-resident” i s de f i n e d as a person who is not A l l i ncome of part-year residents and d educts from gross income
ⁱ^ki/CRS-95-a r esident. 35 ILCS § 5/1501 (14). non-residents attributable to ce r t ainactivities within Il l i nois. 35 ILCS §§ any compensation paid t o aresident who i s a me mber of
^g/wSee Soldiers' and Sailors' Civil Relief Act. 5/301, 304. the armed for c e s while on
^s^.or active duty.
^le^ak Illinois deducts from gross income any
^://wiki compensation paid t o a resident who i s Military retirees are not taxed
^h^ttp a member of t he arme d f orc e s of t he on retirement or dis ability
United States while on active duty. 35 income .

ILCS § 5/203(a)(2)(E). Compensation
receive d by a ny resident under a ny
governmental retirement or disability
plan is also deducted from gross
income . 35 ILCS § 5/203(a)(2)(F).

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Kansas Resident indivi duals and non-residents -- A“resident (1) T he taxable i n c ome of a resident Residents -- Subj ect to tax on
indivi dual” is defined as a natural person who is domiciled indivi dual defined as such indivi dual's federal adj usted gross income
in the s tate. A natural person who spends in the aggr egate federal adj usted gross income f o r t he above t he exclusions under §§
more than six months of the t axable year within the state is t a x a b l e ye ar, with certain 911-912 of the IRC.
presumed to be a r esident. K a n. Stat. Ann. § 79-32, 109(b). mo difications not herein relevant.
K a n. Stat. Ann. § 79-32, 110. Non-residents -- Subj ect t o t ax
T he t erm “non-resident” i s de f i n e d as an indivi dual other on that portion of f ederal
than a r esident i ndivi dual. K a n. Stat. Ann. § 79-32, 109(b). (2) T he taxable i ncome of non-resident adj usted gr oss i ncome derived
i n divi duals defined as t hat portion o f from s ources within K ansas.
The K ansas t ax regulations state t hat voting i s prima f acie federal adj usted gross income derived
⁸⁹⁵evidence of domicile in K a nsas. K an. T ax Reg. 92-12-4. from s ources within K ansas. K an.Stat. Ann. § 79-32, 110. Military personnel -- Subj ectto tax on military
See Soldiers' and Sailors' Civil Relief Act. c ompensation with state d
ⁱ^ki/CRS-95- Since K ansas c omputes its own t axableincome from f ederal adj usted gr oss exclusions.

^g/w income , t he exclusions under §§ 911-
^s^.or 9 1 2 of the IRC for i ncome f r o m
^le^ak sources with the United States and the
^://wiki exclusion under § 112 of the IRC for
^h^ttp compensation r eceived f or active
s e r v i c e a s a me mb e r o f t h e a r me d
forces of the United Stat e s f or any
month during which such member
served in a c ombat zone or was
h o spitalized as a r esult of an i nj u r y
incurred i n s uch s ervi ce are apparently
adopted into the computat i o n of
K a nsas taxable i ncome.

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Kentucky Residents and non-resi d e n t s -- T he term “resident” is (1) T he entire net income o f every Residents -- Subj ect to tax on
defined as an i ndivi d u a l domiciled within the state or an r esident indivi dual defined as such federal adj usted gross income
indivi dual who is not domiciled i n t he state, but maintains i ndivi dual's f ederal adj usted gr os s (above t he exclusions und e r
a p l a c e of abode in the s tate and s pends in the aggr egate income with certain modifications not §§ 911-912 of the IRC).
more than 183 days of the t axable year within the s tate. K y. h e r e i n r e l e va n t . K y. R e v. S t a t . §
Rev. Stat.§ 141.010(17). 141.020(1). Non-residents -- Subj ect t o t ax
on federal adj usted gr o ss
T he t erm “non-resident” i s defined as any i ndivi dual who is (2) T hat portion of f ederal a d j usted income derived from s ources
not a r esident of t he state. K y. Rev. Stat. § 141.010(18). gr oss i ncome of non-residents derived within Kentucky.
T he K entucky t ax regulations specify that an indivi dual from s ources w i t h in K entucky. K y.
⁸⁹⁵who i s permitted t o f ile a f ederal income tax r e t u r n a s anon-resident citizen, and who i mmediately prior to residing Rev. Stat. § 141.020(4). Military personnel -- Subj ectto tax on military
in a f oreign country was domiciled i n K entucky, i s Since K entucky c omputes its own c ompensation with state d
ⁱ^ki/CRS-95-considered a K entucky r esident and must file a r esidentindivi dual i ncome t ax return. K y. T a x R e g. 103 K AR taxable i n come from f ederal adj ustedgr oss i ncome, the e xclusions under §§ exclusions.

^g/w17:010. See a lso, t h e f o l lowing two opinions of the 911-912 of the IRC for i ncome from
^s^.orK e n t u c ky Attorney General r elating t o t his s ubj ect: Op. sources without the United States and
^le^akAtty. Gen. K y. (J uly 12, 1939); Op. Atty. Gen. K y. (May the e xclusion under § 112 of t h e IRC
^://wiki12, 1960). for compensation r eceived for active
^h^ttp s e r v i c e a s a me mb e r o f t h e a r me d
See Soldiers' and Sailors' Civil Relief Act. forces of the United Stat e s f or any
month duri ng which such me mber
served in a c ombat zone or was
hospitalized as a result of an injury
incurred i n s uch s ervi ce are apparently
adopted into the comp u t ation of
K e ntucky taxable i ncome . K y. Rev.
Stat. § 141.020.

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Loui si ana Residents and non-resi d e n t s -- T he term “resident” is T he entire f ederal adj u sted gr oss Residents -- Subj ect to tax on
defined as every natural person domiciled i n t he state, and income of resi d e nt indivi duals, with federal adj usted gross income
every other natural person who maintains a permanent place certain modifi cations not herein above t he exclusions under §§
of abode within the s tate or who s pends in th e a ggr egate releva nt. La. Rev. Stat.§ 47-293. 911-912 of the IRC.
mor e t h a n six months of the t axable year within the s tate.
La.Rev.Stat.§47-31. Since Lo uisiana computes its own Non-residents -- Subj ect t o t ax
taxable i ncome from f ederal adj u s t ed on net i ncome derive d from
T he Louisia n a T ax Regulations state t hat domicile is a gr oss i ncome, the e xclusions under §§ sources within Louisiana.
factual de t e r mi nation of i ntent t o r emain i n or r eturn t o 911-912 of the IRC for i ncome from
Louisiana. Examples in the Regulations indicate t hat an sources without the U n i ted States are Resident military personnel --
⁸⁹⁵i n d i vidual may spend l arge portions of his or her timeoutside of Louisiana without relinquish i n g domicile. La. apparentl y a dopted into thecomputation of Louisiana t a xable Subj ect to tax on mili t arycompensation except f or
Inc. T a x Regs. 31.2. income . La. Rev. Stat. § 47-293(6). pensions or annuities f or
ⁱ^ki/CRS-95-See Soldiers' and Sailors' Civil Relief Act. personal i nj uries or s icknessincurredinthe armedforces.
^g/w T he net income of non-residents
^s^.or earned or derived from s ources within Non-resident mi litary
^le^ak the s t a t e . La. Rev. Stat. §§ 47-241, personnel -- S ubj ect to tax on
^://wiki and 47-293(7). non-military pay f rom s ources
^h^ttp within Louisiana.

The gross i n come of military
personnel does not include pensions or
annuities f or sickn e ss incurred i n t he
arme d f orces. La. Rev. S t a t . § 47-

46(4).

Military pay of non-resident
servicemen stationed within Louisiana
is not taxable by Louisiana. See
Soldiers' and Sailors' Relief A c t ,
supra.

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Maryland Residents and non-resi d e n t s -- T he term “resident” is (1) T he taxable net income of residents Residents -- Subj ect to tax on
defined as any indivi dual domiciled i n t he state on t he last defined as f ederal adj usted gr oss federal adj usted gross income
day of t he taxable year, and e ve ry other i ndivi dual who, for income with certain modifications not above t he exclusions under §§
more than six months of the t axable year, maintains a place herein relevant. Since Maryland 911-912 of the IRC.
of abode within the s tate, whether domiciled i n t he state or defines its taxable net income in terms
not. M d. T a x & Rev. Code Ann. § 10-101(h). of federal a dj usted gross income , t he Non-residents -- Subj ect t o t ax
exclus i o ns under §§ 911-912 of the on the portion of f ede r al
T he t erm “ non-r e s i d e nt” means a n i ndivi dual who is not a IRC for income from sources without adj usted gr oss i ncome derived
resident. M d. T a x & Rev. Code Ann. § 10-101(g) . t he United States are apparently from sources within
adopted into Maryland taxabl e i ncome. Maryland.
⁸⁹⁵Evidence that a person has regi stered to vote in Maryland isordinarily persuasive evidence that such person is domiciled Md. T ax & Rev. Code Ann. §§ 10-206,10-401. Military personnel -- Subj ect
in Maryland. Comptroller of t he Tr e asury v. Lenderking, to tax on militar y
ⁱ^ki/CRS-95-268 Md. 613, 303 A.2d 402 (1973); Roberts v. Lakin, 340Md. 147, 665 A.2d 1024 (1995). (2) T he portion of a non-resi d e nt'sfederal adj usted gross income derived compensa t i on with statedexclusions.

^g/w from sources within and with out the
^s^.orSee Soldiers' and Sailors' Civil Relief Act. state. Md. T ax & Rev. Code Ann . §
^le^ak 10-401.
^://wiki
^h^ttp Since M aryl and c omputes its own
taxable i ncome from f ederal adj usted
gr oss i ncome, the e xclusion under §
112 of the IRC fo r c ompensation
r eceived f or active servi ce as a
member of the armed for c es of the
United States f or an y month during
whichsuchmemberservedin a
combat zone or was hospitalized a s a
result of an inj ury incurre d i n such
service i s apparently adopte d i nto the
computation of M aryl and t axable
income . M d. T a x & Rev. Code Ann.§
10-401

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Maryland Military residents may deduct t he first
(Continued) $15,000 of military pay attributable to
military service outside the Unite d
S t ates. T his deduction i s r educe d
dollar-for-dollar f or each dollar earned
over $ 15,000. Md. T ax & Rev. Code
Ann.§ 10-207(p).
Military retirees with federal adj usted
gr oss i ncome und e r $22,500 ma y
⁸⁹⁵ deduct $2,50 0 from t axable incomesubj ect to certain conditions. M d. T ax
& Rev. Code Ann. 10-207(q).

ⁱ^ki/CRS-95-
^g/w
^s^.or
^le^ak
^://wiki
^h^ttp

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
M i chigan Residents and non-resi d e n t s -- T he term “resident” is (1) T he taxable i ncome of r esidents Residents -- Subj ect to tax on
defined as an i ndivi dual domiciled i n t he state. “Domicile” d e f i ned as t axable income for f edera l federal adj usted gross income
is defined as t he place where a person has h i s t r ue, fixed, inco me tax purposes. However, allocable t o sources with in
and perma nent home a nd principal e stablishment t o which, Michigan generally taxes only i ncome M i c h i gan above t h e
whenever abse n t therefrom, he intends to return, and a llocable to certain activities a n d exclusions of §§ 911-912 of
domicile continues until anoth e r permanent establishment sources within Michigan. Also, since t h e IRC.
is established. If an indivi dual lives in the state for at l east Michigan defines its taxable i nc o me
183 days during t h e taxable year or more t han ½ t he days for f ederal income tax purpos e s , t he Non-residents -- Subj ect to tax
during t he taxable year of less than 12 months, he i s deemed exclusions for i ncome e arned without on taxable i ncome allocable t o
a r e s i d e n t i ndivi dual domiciled i n t he state. Mich. Comp. the United States under §§ 911-912 of sources within Michigan.
⁸⁹⁵L. Ann. § 206.18. the IRC would a pply. Mich. Comp. L.Ann. §§ 206.30, 206.110. Military personnel --
Non-resident -- T he t erm “ non -r esident” is defined as a ny Michigan does not tax military
ⁱ^ki/CRS-95-indivi dual who is not a r e s i dent. Mich. Comp. L. Ann. §206.14. (2) T he taxabl e i ncome of non-resi d e n t s t o t he extent allocable to compensation or r etireme ntincome from servi ce in t h e
^g/w sources within Michigan. Mich . armed f orces.

^s^.orSee Soldiers' and Sailors' Civil Relief Act. Comp . L. Ann.§§ 206.51, 206.110.
^le^ak
^://wiki Michigan allows the deduction, to th e
^h^ttp extent included i n f ederal adj usted
gr oss i ncome, of compensa tion,
including retirement benefits, r eceived
for servi ces in the armed forces of the
United States. Mich. Comp. L. Ann.§

206.30(e).

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
M i nnesota Residents and non-resi d e n t s -- T he term “resident” is T he gross income of residents defined Residents -- Subj ect to tax on
defined as an i ndivi dual domicil e d i n the s tate or any a s federal adj usted gross income wit h federal adj usted gross income
indivi dual maintaining a place of abode within the s tate and certain modifi cations not herein above t he exclusion under §§
who s pends over half of t h e t ax year in Minnesota. An relevant. Since Minnesota defines its 911-912 of the IRC.
indivi dual i s not a r esident f or t h e period of time t hat t he gr oss i ncome i n t erms of federa l
indivi dual i s qualified under § 911(d)(1) of t he IRC. Minn. adj usted gross i ncome, the e xclusions Non-residents -- Subj ect t o t ax
Stat. § 290.01(7). under §§ 911-912 of the IRC for on federal adj usted gr o ss
income from s ources without the income allocable t o s ources
T he M innesota T ax Regulations s t a t e t hat voting i n United States are apparen t ly adopted within Minnesota.
M i n n e sota is presumptive evi dence of r esidence, but may into the computation of M innesota
⁸⁹⁵be overcome by facts contra r y t o the presumption ofresidence. Minn. T a x. Reg. 1.6001; gr oss i nc ome. Minn. Stat. §§290.01(19) et seq. Military personnel -- Subj ectto tax on military
c ompensation with state d
ⁱ^ki/CRS-95-See Soldiers' and Sailors' Civil Relief Act. T he net income of non-residentsallocable to sources within Minnesota. exclusions.

^g/w M i n . Stat. §§ 290.01( 2 2 ) ( 2 ) ;
^s^.or 290.06(2c)(e).
^le^ak
^://wiki Since M innesota comput e s its own
^h^ttp taxable i ncome from f ed e r al adj usted
gr oss i ncome, the e xclusion under §
112 of the IRC for c ompensation
received f or active service as a
member of the arme d forces of the
United States f or a n y month during
whichsuch memberservedina
c o mbat zone or was hospitalized as a
result of an inj ury incurred i n s uch
service i s apparently adopted into
computation of M inne s ota taxable
income . M inn. Stat. § 290.01

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
M i ssour i Residents and non-resi d e n t s -- T he term “resident” is T he M issouri t axable income of Residents -- Subj ect to tax on
defi n e d a s an i ndivi dual who is domiciled i n t his s tate, residents calc u l a ted on t he basis of Mi s s o uri t axable income,
unless he ( 1) maintains no permanent place of abode in this federal adj usted gross income with which e xcludes i nc o me from
state, (2) d o e s maintain a permanent place of abode modifications. Sin c e Missouri sources without the United
elsewhere, and ( 3) spends in the aggr e ga t e n ot more than computes its taxable i ncome fro m States i n the s ame manner as
thirty days of the t a x able year in this state, or who i s not fede r a l a dj usted gross income , t he §§ 911-912 of the IRC.
domiciled i n t his s tate, but maintains a permanent place of exclus i o ns under §§ 911-912 of the
abode in this s t a t e a n d spends the i n t he aggr egate more IRC for income from sources without Non-residents -- Subj ect to tax
than 183 days of the t axable year in this state. Mo. Stat. § t he United States are apparently on in c o me d e rived from

143.101. adopted into the comput a tion of sources within Missouri.

⁸⁹⁵T he t erm “non-resident” i s defined as an indivi dual who is Missouri t axab l e income. M o. Stat. §143.121. Military personnel -- Subj ect
not a r esident of t his s tate. M o. Stat. §. 143.101. to tax on payments f or service
ⁱ^ki/CRS-95-See Soldiers' and Sailors' Civil Relief Act. T he i nco me of non-residents derivedfrom sources within Missou r i. Mo. in the armed services wi thstated exclusions.

^g/w Stat. § 143.181(1).
^s^.or
^le^ak Since M issouri c omputes its own
^://wiki taxable i ncome from f edera l adj usted
^h^ttp gr oss i ncome, the e xclusion under §
112 of the IRC for c ompen s ation
received f or act ive s ervi ce as a
member of th e armed forces of the
United States f o r any month during
which s uch member s erve d i n a
co mb a t zone or was hospitalized as a
result of an inj ury incurred i n su c h
service i s apparently a dopted into
computation of M issouri t axable
income . M o. Stat. § 143.121

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Nebraska Residents and non-resi d e n t s -- T he term “resident” is (1) T he entire t axable income o f Residents -- Subj ect to tax on
defined as an i ndivi d u a l who is domiciled i n t he state or residents defi ned as federal t axable federal adj usted gross income
who maintains a permanent place of abode within the s tate income with certain modifications not above t he exclusions under §§
and s pends in the aggr egate more t han s ix months of the h erein relevant. Neb. Rev. Stat. § 77- 911-912 of the IRC.
taxable year wi t h i n the s tate. Neb. Rev. Stat. § 77- 2716. Since Nebraska c omputes its tax
2714.01(7). base in terms of f ederal adj usted gr oss Non-residents -- Subj ect t o t ax
income , t he exclusions under §§ 911- on federal adj usted gr o ss
T he t erm “non-resident” i s defined as an indivi dual who is 912 of the IRC are a pparently adopted. income derived from s ources
not a r esident of t his s tate. Neb. Rev. Stat.§ 77-2714.01(4). within Nebraska.
(2) T he federal adj usted gross income
⁸⁹⁵See Soldiers' and Sailors' Civil Relief Act. of non-residents derived from s ourceswithin Nebraska. Neb. Rev. Stat. § 77- Military personnel -- Subj ectto tax on military
2733. c ompensation with state d
ⁱ^ki/CRS-95- T he f ederal exclusion und e r § 112 of exclusions.

^g/w the IRC for compensation r eceived for
^s^.or active s ervi ce as a member of t he
^le^ak armed f orces of the United States f or
^://wiki any month during which such me mber
^h^ttp served in a c ombat zone or was
hospitalized as a r esul t o f an i nj ury
incurred i n s uch s ervi ce is adopted
specifically into the computation of
Nebraska taxable i ncome. Neb. Rev.
Stat. § 77-27,123.

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
New Y or k Residents and non-resi d e n t s -- T he term “resident” is (1) T he adj usted gr oss i ncome o f Residents -- Subj ect to tax on
d e f i n e d as: (1) an i ndivi dual who is domiciled i n t he stat e residents i s defined as federal adj usted federal adj usted gross income
unless he maintains no perma n ent place of abode in the gr os s i ncome with certain above t he exclusion under §§
state a nd spends not over 30 days of the t axable ye ar within modifications not herein relevant . 911-912 of the IRC.
the state, or he i s present in a f oreign country fo r a t l e a s t Sin c e New York defines its own
450 days of a 548 day period, and during s uch 548 day adj usted gr oss i nc o me i n t erms of Non-residents -- Subj ect t o t ax
period he is not in the s tate for more t han 90 days and does federa l adj usted gross income, t he on federal adj usted gr o ss
not maintain a permanent place of abode in the s tate where exclusions for i ncome e arned from income derived from s ources
his spouse or minor children are present for 90 days or sources without the United S t ates are within New York.
more, a nd other c onditions, or ( 2) an indivi dual who is not apparently adopted into the
⁸⁹⁵domiciled i n t he state, but maintains a permanent p lace ofabode within the s tate and s pends in the aggr egate more computation of New York adj ustedgr oss i ncome. N.Y. T a x Law. § 612. Military personnel -- Subj ectto tax on military
than 183 days of the t axabl e ye a r within the s tate, unless c ompensation with state d
ⁱ^ki/CRS-95-such indivi dua l i s i n active s ervi ce in the armed forces ofthe United States. N.Y. T a x Law § 605(b)(1). (2) T he federal adj usted gross incomeof non-residents derived from s ources exclusions.

^g/w w i t h i n Ne w Yor k. N.Y. T a x L a w §
^s^.orT he t erm “non-resident” i s defined as an indivi dual who is 631.
^le^aknot a r esident. N.Y. T a x Law § 605(b)(2).
^://wiki Military compensation o f one not
^h^ttpSee Soldiers' and Sailors' Civil Relief Act. domic iled i n New York is not to be
conside r e d income derived from New
Y o rk sources. N.Y. T ax Law §

631(e).

Since New York computes its own
ta x a ble i ncome from f ederal adj usted
gr oss i ncome, the e xclusion under §
112 of the IR C for c ompensation
received f o r active servi ce as a
member of the arme d forces of the
U n ited States f or any month duri n g
whichsuchmemberservedina
combat zone o r w a s hospitalized as a
result of a n inj ury incurred i n such
service i s apparen t l y adopted into the
computation of New York taxable

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Nor t h Residents and non-resi d e n t s -- T he term “resident” is (1) T he taxable i ncome of r esidents Residents -- Subj ect to tax on
Dakota defined as any natural person domiciled i n t he state and anyother natural person who mai ntains a perma nent place of defined i n t erms of federal t axableincome with certain modifications not federal t axable income abovethe e xclusions under §§ 911-
abode within the State and s pends i n the aggr egate more herein r e l evant. Since North Dakota 912 of the IRC.
than seve n months of the i ncome year w i t h i n the s tate. A defines its o w n t axable income in
full-time active duty member of t he armed f orces assigned t e r ms of f ederal taxable i ncome, the Non-resident -- Su b j ect t o t ax
to a military installation i n t his state, or t he spouse of such exclus i o ns under §§ 911-912 of the on net i ncome from s o urces
a person, is not a r esident s imply by r eason of voting i n an IRC for income from sources without within North Dakota.
election i n t he state. N.D. Code § 57-38-01(6). t he United States are apparently
adopted into the computation of North Military pers onnel -- T axable
⁸⁹⁵See Soldiers' and Sailors' Civil Relief Act. Dakota taxable i ncome. N.D. C ode §57-38-01.2. i n c o me is reduced by: ( a) anyamount up to $1,000, receive d
by any person a s payme nt for
ⁱ^ki/CRS-95- T a xable i n c ome i s r educed by: ( a) anamount up to $1,000, receive d a s services performed while onactive duty i n t he armed f orces
^g/w payment f or services performed while of the United States, or as
^s^.or on active du t y i n t he armed f orces of payment f or attending military
^le^ak the United States, as payment f or meetingsasamemberofthe
^://wiki attending military mee tings as a NationalGuard,orofa
^h^ttp me mber of the National Guard, or of a reserve unit; and ( b) any
reserve unit; and ( b) any amount up to amount up to $5,000 receive d
$5,000 receive d by a ny pe r s on fifty by any person f ifty years or
years or older as r e t i r ed military pay older as r etired military pay
for servi ce in the United States armed for servi ce in the United States
forces or reserve components t here o f , armed f orces o r reserve
reduced b y any amount received components t hereof, r educe d
pursuant t o t he Federal Social Security b y a n y a mount r eceived
Act. N.D. Code § 57-38-01.2(l). pursuant t o t he Federal Social
Security Act.

T he net income of non-residents
d e rived from sources within North
Dako ta. N.D. Code § 57-38-03.

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
North Dakota Also, persons s e r vi n g i n t he arme d Also, per s ons serving i n t he
(Continued) forces, except f ield gr ade a n d general armed f orces, exce pt f ield
officers who are s tationed ou t s i de of gr ade and general officers,
any state or the Distri c t o f Columbia who are station e d outside of
for not less than thirty days during t he any sta t e or the District of
tax year, s hall be allowed an additional Columbia for not les s than
reduction of up t o $300 per month f or thirty days during t he taxable
services p e rformed while on active ye a r , s hall be allowed an
duty a t s uch l ocation. N.D. Code § 57- additional r eduction of up t o
38-01.2(1)(k);. $300 per month for services
⁸⁹⁵ performed while on activeduty a t each l ocation.
ⁱ^ki/CRS-95-
^g/w
^s^.orOhio Residents and non-resident s -- T he term “resident” is T he adj usted gross income of residents Re s i dents -- Subj ect t o t ax on
^le^akdefined as an i ndivi dual wh o i s domiciled i n t his s tate. defined as f ederal adj uste d gr oss federal adj usted gross income
^://wikiOhio Code tit. 57 § 5747.01(I) . One is presumed domiciledin the s tate if one spent over 183 nights in the state during income with certain modifications notherein relevant. Since Ohio defines its above t he exclusions under §§911-912 of the IRC.
^h^ttp12 consecutive months. One is presumed not domiciled i f own adj usted gross income in terms of
one spent l ess t han 1 2 0 nights in the s tate during 12 federal adj usted gr o ss income , t he Non-residents -- Subj ect t o t ax
consecutive months.. Ohio Code tit. 57 § 5747.24. exclusions under §§ 911-912 of the on adj usted gr oss i ncome
IR C f or income from s ources withou t derived from sources within
T he t erm “non-resident” i s defined as an indivi dual who is the United State s are apparently Ohi o .
not a r esident. Ohio Code tit. 57 § 5747.01(J ) . adopted into the computation of Ohio
adj usted gr oss i ncome. Ohio Code tit. Military personnel -- Subj ect
See Soldiers' and Sailors' Civil Relief Act. 57 § 5747.01(A). to tax on mi l itary
compensation w i t h s tated
exclusions.

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Ohio T he a dj usted gross inco me on non-
(Continued) residents derived from sources within
Ohio. Ohio Code tit. 57 § 5747.01.
T he f ederal exclusion under § 112 of
the IRC for compensation r eceived for
active s ervi ce as a member of t he
armed f orces of the United States f or
any month during which such me mber
served in a c ombat zone or was
⁸⁹⁵ hospitalized a s a r esult of an i nj uryincurred i n s uch s ervi ce is ad opted
specifically into the computation of
ⁱ^ki/CRS-95- Ohio tax a b l e i ncome. Ohio Code tit.57 § 5747.02.4.
^g/w
^s^.or
^le^ak
^://wikiResidents and non-resi d e n t s -- T he term “resident” is (1) T he taxable i ncome of r esidents Residents -- Sub j e ct to tax on
^h^ttpOkl a homa defined as any indivi dual who is domiciled i n t he state. defined on t he basis of f ederal adj usted taxable i ncome a bove t he
Any i ndivi dual who spends in the a ggr egate more t h a n gr oss i ncome wi t h certain exclusions unde r §§ 911-912
seve n months of the t axable year within the s tate shall be modifications not her e in relevant. of t h e IRC.
presumed a r esident. Okla. Stat. tit. 68 § 2353(4). Since Okl a homa bases its taxable
income on federa l adj usted gross Non-residents -- Subj ect t o t ax
income , t he exclusions under §§ 911- on taxable i ncome derived
9 1 2 of the IRC for i ncome f r o m f r om source s w i t h i n
sources without the United S t ates are Oklahoma.
ap p a r ently adopted into the
computation of Okl ahoma t axable Military personnel -- Subj ect
income. Okl a. Stat. tit. 68 §§ 2353(3), totaxonmilitary
2355. comp e nsation above t he first
$1,500.

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Oklahoma T h e t e r m “non-resident indivi dual” is defined as an (2) T he federal adj usted gross income
(Continued) indivi dual, other t h a n a resident indivi dual with special of non-residents derived from s ources
provi s i o n s for f oreign earned income. Okl a. St at. tit. 68 § within Oklahoma. Okla. Stat. tit. 68 §

2353(4).2362.

See Soldiers' and Sailors' Civil Relief Act. (3) In a ny taxable year the f irst $1,500
received by any per s o n from t he
United States as salary or
compensation i n any form ( other than
a pension) as a membe r of a ny
⁸⁹⁵ component of the a rmed forces of theUnited States shall be deducted from
t axable i ncome. Okla. Stat. tit. 68 §
ⁱ^ki/CRS-95- 2358(D)(5).

^g/w
^s^.or
^le^ak
^://wiki
^h^ttp

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Rhode Residents and non-resi d e n t s -- T he term “resident” is (1) T h e Rhode Is land income of Residents -- Subj ect to tax on
Island defined t o i nclude both ( 1) domiciliaries, a nd (2) non-domiciliaries who maintain a permanent place of abode residents i s defined as federal adj ustedgr os s i ncome with certain taxable i ncome a bove t heexclusions under §§ 911-9 12
within the stat e a n d r e s ide i n t he state f or more than 183 modifications not herein relevant . of t h e IRC.
days of the t axable ye a r other t han a s a me mber of the S i n c e Rhode Is land defines its own
arme d f orces of t he United States. R.I. Gen. Laws § 44-30- taxa b l e i ncome i n t erms of federal Non-residents -- Subj ect t o t ax
5(a). adj usted gr oss i ncome, the e xclusions on taxable i ncome derived
under §§ 911-912 of the IR C are fr om sources within Rhode
T he t erm non-resident is defined as an i ndivi dual who is apparently adopt e d into the Is land.
not a r esident. R.I. Gen. Laws § 44-30-5(b). computation of Rhode Is land taxable
⁸⁹⁵See Soldiers' and Sailors' Civil Relief Act. income . R.I. Gen. Laws § 44-30-12(a). Military personnel -- Subj ectto tax on military
c ompensation with state d
ⁱ^ki/CRS-95- (2) T he taxabl e i ncome on non-residents derived from sources within exclusions.
^g/w R h o d e Island. R.I. Gen. Laws § 44-
^s^.or 30-32(a).
^le^ak
^://wiki
^h^ttp S i nce Rhode Is land computes its own
taxable i ncome from f ederal a dj usted
gr oss i ncome, the e xcl u s i ons under §
112 o f the IRC for c ompensation
received f or act ive s ervi ce as a
memb e r of the armed forces of the
U nited States f or any month dur i n g
which s uch member s er ve d i n a
co mb a t zone or was hospitalized as a
r esult of an inj ury incurred i n s uc h
service i s apparently adopted i n t o the
computation of Rhode Is land taxable
income . R.I. Gen. Laws § 44-30-12.

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
South R e sident and non-resident -- T he t erm “ resident” me a n s Resident - t he entire t axable income on Residents -- Subj ect to tax on
Carolina any i ndivi dual who is domiciled i n t he state. T h e t erm“non-resident” means an indivi dual other than a r esident or the basis of federal adj usted grossincome with certain modificati ons, taxable i ncome a bove t heexclusion under § 911 o f the
part year resident. S.C. Code § 12-6-30(2). S . C . Code § 12-6-560. No exclusio n IRC.
und e r § 9 12 is allowed. S.C. Code §
12-6-1120( 5). Non-resident - s ubj ect Non-residents -- Subj ect t o t ax
to tax on property owned or busi n ess on taxable i ncome derived
carried on in South Carolina. S .C. fr o m sources within South
Code § 12-6-1720. Carolina.
⁸⁹⁵ Retir e e s ma y deduct up t o $3,000 of Military personnel -- Subj ect
retirement i ncome t hat i s t axable by to tax on military
South Carolina or i r r evocably choose compens a tion with stated
ⁱ^ki/CRS-95- to defer a n nual r etirement i ncome exclusions.

^g/w deduction until the year t he taxpayer
^s^.or reaches sixt y-five years of age. S.C.
^le^ak Code § 12-6-1170(1).
^://wiki Since South Carolina computes its own
^h^ttp taxable i ncome from f ederal ad j u sted
gross income, the exclusions under §
112 of the IRC for c omp e nsation
received f or active servi ce as a
member of the armed forces of t h e
United States f or any month d u r i ng
which suchmemberservedina
combat zo n e or was hospitalized as a
re s ult of an inj ury incurred i n such
ser vi c e i s apparently adopted into the
computation of South Carolina taxable
income . S.C. Code § 12-6-560.

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Utah Residents and non-resi d e n t s -- T he term “resident” is (1) T he taxable i ncome of r esidents is Residents -- Subj ect to tax on
defined t o i nclude do mi ciliaries, and indivi duals not defined i n t erms of federal t axable taxable i ncome a bove t he
domiciled i n t he state and residing within t h e state in the income with certain modifications not exclusions under §§ 911-912
aggr egate f or over 183 days of the t axable year. Utah Code herein relevant. Since Ut ah defines its of t h e IRC.
§ 59-10-103(j ) . own t axable income in terms of f ederal
t a xable i ncome, the e xclusions under Non-residents -- Subj ect t o t ax
T he t erm non-resident is def i ned as an i ndivi dual who is §§ 911-912 of th e IRC for i ncome on taxable i ncome derived
not a r esident of t he state. Utah Code § 59-10-103(g) . from s ources without the United States from sources within Ut ah.
a r e apparently adopted into Utah
See Soldiers' and Sailors' Civil Relief Act. taxable i ncome. Utah Code §§ 59-10- Military personnel -- Subj ect
⁸⁹⁵ 104 & 112. to tax on military pay w ithstated exclusions.
Sinc e Utah c omputes its own t axable
ⁱ^ki/CRS-95- inc o me from f ederal taxable i ncome,
^g/w the e xclusio n under § 112 of the IRC
^s^.or for comp ensation r eceived f or active
^le^ak s e r v i c e a s a me mb e r o f t h e a r me d
^://wiki f o rces of the United States f or anymonth during whi ch such me mber
^h^ttp served in a c ombat zone or was
hospitalized as a r esult of a n i n j ury
incurred i n such servi ce is app a r e ntly
adopted into the computation of Utah
taxable i ncome. Utah Code §§ 59-10-

104 & 116.

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Ver m ont Residents -- T he term “resident” is defined t o i nclude both (1) T he adj usted gr oss i ncome o f Residents -- Subj ect to tax on
(1) domiciliaries, a n d ( 2) non-domiciliaries who maintain residents i s defined as federal adj usted federal adj usted gross income
a perma nent place of abode w i t h i n the s tate and r eside gr oss i ncome. Since V ermont defines above t he exclusions under §§
within the s tate for more t han 183 days of the t axable year. its adj usted gr oss i ncome i n t erms of 911-912 of the IRC.
Vt. Stat. tit. 32 § 5811(11)(A)(i), (ii). f e deral a dj usted gross income , t he
excl u s ions under §§ 911-912 of the Non-residents -- Subj ect t o t ax
Non-resident -- anyone not a r esident. Vt. Stat. tit. 32 § IRC for income from sources without on federal adj usted gr o ss
5811(9). the United States are app arently income derived from s ources
adopted int o the computation of within Vermont.
See Soldiers' and Sailors' Civil Relief Act. V e rmont adj usted gr oss i ncome. V t .
⁸⁹⁵ Stat. tit. 32, §§ 5811(1), 5822, 5823. Military personnel -- Notsubj ect t o t ax o n military pay
for f ull-time active dut y
ⁱ^ki/CRS-95- service performed outsid e ofthe state.
^g/w
^s^.or
^le^ak
^://wiki (2) T he adj usted gr oss i ncome of non-residents derived from sources within
^h^ttp Vermont. V t. Stat. tit. 32, § 5823.
(3) Adj usted gross in c ome does not
include military pay f or full-time
a c tive duty with the armed servic e s
outside of the stat e . V t. St at. tit. 32 §

5823(a)(2).

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Virginia Residents and non-resi d e n t s -- T he term “resident” is (1) T he taxable i ncome of r esidents Residents -- Subj ect to tax on
defined as an i ndivi dual domicil ed in the Commonwealth defined i n t er ms of federal adj usted federal adj usted gross income
and a person who maintains an abode in the s tate for more gr os s i ncome with certain above t he exclusion under §§
than 183 days of the t axable ye ar. V a. Code § 58.1-302. modifications not herein relevant . 911-912 of the IRC.
Since V irgi nia defines its taxable
Persons in the armed forces of the United States s t ationed income in terms of f ederal adj ust ed Non-residents -- Subj ect t o t ax
on military or naval r eservat i o n s within Virginia who are gr oss i ncome, the e xclusion unde r § § on taxable i ncome derived
not domicil ed in Virginia and who maintain no place of 911-912 of the IRC are a ppare n tly from sources within the state.
abode in V i rginia shall not be held liable t o i ncome t axation adopted into the computation of
f or compensation r eceived from military or naval s ervi ce. V i rginia taxable i ncome. T he f i r st Military personnel -- Subj ect
⁸⁹⁵V a . Code § 58.1-321(B). $15,000 of military pay i s e xc ludedfrom i nc o me , with a dollar f or dollar to tax on military pay w ithstated exclusions.

r e d u c tion i n t he exclusion f or income
ⁱ^ki/CRS-95- over $15,000. V a . Code § 58-1-322.
^g/w (2) T he taxab l e i ncome of non-
^s^.or residents derived from sources within
^le^ak the s tate. V a. Code § 58-1-325.
^://wiki
^h^ttp T he f ederal exclusion under § 112 of
the IRC for compensation r eceived for
active s ervi ce as a member of t he
armed f orc es of t he United States f or
any month during which such me mber
served in a c ombat zone or was
hospitalized as a r esult of a n i nj ury
incurred i n such servi ce is specifically
adopted into t he computation of
V i rginia taxable i ncome. V a . C ode §

58-1-322.

Virginia gr ants a t ax credit for t axes
paid to a f oreign country on retirement
income . V a. Code § 58-1-332.1.

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
West Residents and non-resi d e n t s -- T he term “resident” is (1) T he taxable i ncome of r esidents Residents -- Subj ect to tax on
Virginia defined t o i nclude: ( 1) domiciliaries, unless t hey maintainno permanent place of abode within the s tate, mainta i n a defined i n t er ms of federal adj ustedgr oss i ncome with modifications no t taxable i ncome a bove t heexclusions under 911-9 12 of
p e r ma n ent place of abode outside the s tate, a nd spend not herein relevant. Since West V irgi nia t h e IRC.
more than 30 days o f t h e t axable year in the s tate, and (2) defines its o w n t axable income in
non-domiciliaries who maintain a permanent place of abode terms of f ederal adj usted gr oss i ncome, Non-residents -- Subj ect t o t ax
within the state and r eside within the s tate for more t han the e xclusions under §§ 911-912 of the on taxable i ncome derived
183 days of the t axable ye ar. W . V a. Code § 11-21-7(a). IRC f or income from s ources outs i d e from sources within West
t he United States are apparently Virginia.
“Non-resident” i s defined to mean an indivi dual who is not incorporated into the d e f inition of
⁸⁹⁵a r esident. W. V a . Code § 11-21-7(b). West V i rginia taxable i ncome. W. V a.Code §§ 11-21-11(a), 12. Military personnel -- Subj ectto tax on s uch compen s a tion
See Soldiers' and Sailors' Civil Relief Act. with stated exclusions.

ⁱ^ki/CRS-95- (2) T he taxabl e i ncome of non-residents derived from sources within
^g/w West V i rginia. W . V a. Code §§ 11-21-
^s^.or 30, 32.
^le^ak
^://wiki Since West V irgi nia computes its own
^h^ttp taxable i ncome from f ed e r al adj usted
gr oss i ncome, the e xclusion under
Sect i o n § 112 of the IRC for
compensation r eceived f or active
s e r v i c e a s a me mb e r o f t h e a r me d
forces of the United St a tes f or any
month du r ing which such member
served in a c ombat zone or was
hospitalized as a r esult of an i nj ury
i n c urred i n such servi ce is apparentl y
adopted into comp u t ation of West
V i rginia taxable i ncome. W. V a. Code
§11-21-11

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Wi sconsi n Residents and non-resi d e n t s -- T he term “resident” is (1) T he taxable i ncome of r esidents Residents -- Subj ect to tax on
defined as a domiciliary. Wis. Stat. § 71.02(1). defined i n t er ms of federal adj usted taxable i ncome a bove t he
gr os s i ncome with certain exclusions under §§ 911-9 12
See Soldiers' and Sailors' Civil Relief Act. modifications not herein relevant . of t h e IRC.
Since Wisconsin defines its own
taxa b l e i ncome i n t erms of federal Non-residents -- Subj ect t o t ax
adj usted gr oss i ncome, the e xclusions on taxable i ncome derived
u nder §§ 911-912 of the IRC for from sou r c e s wi t hin
income from s ources without the Wisconsin.
United States are appa r ently adopted
⁸⁹⁵ into the computation of Wisconsintaxable i ncome. Wis. Stat. §§ Military personnel -- Subj ectto tax on military
71.01(13) & 71.05. c ompensation with state d
ⁱ^ki/CRS-95- (2) T he taxable i ncome of no n - exemption.

^g/w residents derived from sources within
^s^.or W i sconsin. Wis. Stat. §§ 71.0 1 &
^le^ak 71.02. Non-r e s i d e n t s d o mi c iled
^://wiki without Wisconsin who derive i ncome
^h^ttp from performing personal services
within W i sconsin shall be excluded
from having t o pay Wiscon s i n t ax to
the e xtent t hat t he home domicile taxes
the i ncome. Wis. Stat. § 71.05(2).

PROBABLETAX
STATE I NCO M E TAX CO VERAGE TAX B ASE O B LI GATI O N
Wisconsin Since Wisconsin computes its o w n
(Continued) taxable i ncome f rom f ederal adj usted
gr oss i ncome, the e xclusion under §
112 of the IRC f o r c ompensation
received f or active servi ce as a
member of the arme d forces of the
United S t a tes f or any month during
whichsuchmember servedina
combat zone or was hospit a l i z ed as a
result of an inj ury in c urred i n such
⁸⁹⁵ service i s apparently adopted intocomputation of Wisconsin ta x able
income . W is. Stat. § 71.05.
ⁱ^ki/CRS-95-
^g/w IV. S tates H aving N o I ncome Tax
^s^.or
^le^ak
^://wiki
^h^ttpSTATES: Al aska
Florida
Nevada
SouthDakota
Texas
Washington
Wyoming