According to the Idaho Instructions: "Under the Servicemembers Civil Relief Act, a service member will not lose or acquire a residence or domicile in regard to his or her income tax as a result of being absent or present in a state due to military orders. A qualified service member isn't a resident of, or domiciled in Idaho solely as a result of being stationed in Idaho."
A service member includes any uniformed service member such as: A member of the army that includes Armed Forces, Naval, Air Force, Navy, or Coast Guard in active service. It shall also include members of the National Guard who have been called to serve by the President of the United States or the Secretary of Defense of the United States for a period of more than (30) consecutive days, responding to a national emergency declared by the President and supported by federal funds.
A member of the commissioned body of the Public Health Service in active service. The safe harbor exception of being an Idaho resident is explained in the "Special Cases of Idaho Residents" that are not applicable to a qualified service member.
A member of the commissioned corps of the National Oceanic and Atmospheric Administration on active duty.
If you are a resident of Idaho, stationed in Idaho on active duty: Then all of your income is taxable to Idaho including the active duty military pay and all additional income regardless of where it was earned. You are required to file an Idaho income tax return if Idaho is your home of record. You will need to complete and file Form 40.
If you are a resident of Idaho, stationed outside of Idaho on active duty:
- The servicemember joined the armed forces while they were a resident of Idaho and Idaho is your registered address;
- The servicemember was on active duty for 120 consecutive days or more during the tax year;
- The servicemember was stationed outside the state of Idaho for all or least part of the year.
You must declare all your income to Idaho. However, only military income received within Idaho and all non-military income, regardless of sources, are subject to taxation. Fill out Form 40 if you are single or if you are married and your spouse is also a resident of Idaho.
If your spouse is a non-resident, fill out Form 43 if you are married and your spouse is not a resident, part-time resident or non-resident of Idaho. Choose the status of "Idaho Resident on Active Military Service" in the box provided. Choose the residence status that applies to your spouse.
If you are a nonresident of Idaho, stationed in Idaho, if your military home of record isn't Idaho and you were on active duty stationed in Idaho for all or part of the year, Idaho doesn't tax your military income. Nonmilitary income from Idaho sources is subject to Idaho tax. File Form 43 if your gross income from Idaho sources exceeds $2,500.
Members of the National Guard called for Active Service in a Combat Zone:
Idaho follows federal law and the IRC to provide tax relief for service members in active service in combat zones. Below is a summary of how these laws affect servicemembers of the Idaho National Guard:
- All tax filing deadlines extend at least 180 days after your last day in a combat zone
- There won't be a penalty or interest added when you don't pay individual taxes, while you are in a combat zone.
- If you are a soldier or non-commissioned officer, you do not owe taxes on the military payment received, while in a combat zone. If you are a commissioned officer, the monthly exclusion has a cap of the highest pay listed, plus any hostile fire or imminent danger income received.
- This federal law does not cover business tax returns, employment taxes, or sales / use tax owed.
- You must write "COMBAT ZONE" and the departure date in red at the top of the tax return you are filing.