According to IT-2008-02, Military Taxpayer Guide to Taxable Income and Deductions, military servicemembers that are residents of Ohio must file a return and include all of their income, no matter where it was earned or the source of the income.
What If I am a resident of Ohio stationed in Ohio
If you are a resident of Ohio stationed in Ohio, all of your military income is taxable to Ohio.
If you are a resident of Ohio stationed outside of Ohio, you may exclude the active duty military pay.
To enter the subtraction, follow these steps in the program:
- State Section
- Ohio Resident Return
- Subtractions From Income
- Military pay for Ohio residents received while the military member was stationed outside Ohio
- Continue
If you are a nonresident of Ohio stationed in Ohio
your active duty pay is not taxable to Ohio.
To enter the subtraction, follow these steps in the program:
- State Section
- Ohio Nonresident Return
- Subtractions From Income
- Certain income earned by military nonresidents and civilian nonresident spouses
- Continue
If one spouse is a resident of Ohio and the other is not
file a joint nonresident return.
Residents of Ohio in the National Guard and Reserves are entitled to deduct military pay received while stationed outside the state.
To enter this deduction, follow these steps in the program:
- State Section
- Ohio Resident Return
- Subtractions From Income
- Ohio National Guard Reimbursements and Benefits
- Continue
Military Retirement
Military retirement pay is not taxed on the Ohio return. To enter a subtraction for the military retirement pay, follow these steps in the program:
- State Section
- Ohio Resident Return
- Subtractions From Income
- Uniformed Services Retirement Income
- Continue