MILITARY W-2

[grandmabee]

I have a military W-2 Box 1 26,200 box 3&5 is 10,500 Box 12 show Q for 5700

Q is combat zone is NOT included in box 1 Correct? I am trying to figure out active duty pay. He did receive a signing bonus Wife doesn't remember how much I thought signing bonus would be subject to SS. I am trying to figure out why SS wages is so much less than box 1

Any help would be appriciated. State has active duty pay substraction so I need to know what's going on with the w-2

[TAXBILLY]

Correct. Combat pay is non taxable and therefore not included in Box 1.

See Page 13:

http://www.irs.gov/pub/irs-pdf/iw2w3_09.pdf

taxbilly

[Hahn1040]

Combat pay is not included in box 1; it is subject to ss so is a part of box 3

signing bonus is taxed (part of box 1) but is not subject to ss

since the signing bonus does not appear on the W-2, you can't make the numbers add up from the info you have on the W-2

I have a military W-2 Box 1 26,200 box 3&5 is 10,500 Box 12 show Q for 5700

Q is combat zone is NOT included in box 1 Correct? I am trying to figure out active duty pay. He did receive a signing bonus Wife doesn't remember how much I thought signing bonus would be subject to SS. I am trying to figure out why SS wages is so much less than box 1

Any help would be appriciated. State has active duty pay substraction so I need to know what's going on with the w-2

[rich]

I had a client in Military for 2008 return and told me he doesnt has to pay Illinois state taxes and no state taxes was witheld on W2 either. Is it True?

Thanks in advance.

[Hahn1040]

IL does not tax active duty military when they are stationed outside of the state

most do not have state tax withheld and do not file for the state

[rich]

IL does not tax active duty military when they are stationed outside of the state

most do not have state tax withheld and do not file for the state

Thanks very much.So It should be filed as Non Resident for illinois?

[Hahn1040]

For IL resident active duty military

How do I report my military pay?

If you are an Illinois resident, you must file Form IL-1040, Individual

Income Tax Return. Your military pay will generally be included in your federal adjusted gross income (AGI) on

Form IL-1040, Line 1.

What military pay may I subtract?

You may subtract tax-exempt military pay that is in your AGI, including

pay for duty in the armed forces, including basic training,

pay for duty as a cadet at the U.S. Military, Air Force, and

Coast Guard academies, as a midshipman at the U.S.

Naval Academy, or in ROTC, and

pay for duty for serving in the U.S. Armed Forces Reserves

or a National Guard unit, including a National Guard unit of

another state.

For tax years ending prior to December 31, 2001, you

may only subtract compensation paid for active duty.

For tax years ending prior to December 31, 2007,

you may subtract National Guard pay only if you were in the

Illinois National Guard.

You may also subtract all income of a person whose federal

income tax on that income is forgiven because the person

died in a combat zone or due to wounds, disease, or injury

incurred in a combat zone.

Residents, part-year residents, and nonresidents, do

not subtract military pay or other income that is not included

in your AGI on Form IL-1040, Line 1.

What military pay may I not subtract?

You may not subtract

military income (such as combat pay) that you excluded

from your AGI on Form IL-1040, Line 1;

pay you received under the Voluntary Separation Incentive;

pay you received from the military as a civilian;

payments you made under the Ready Reserve

Mobilization Income Insurance Program; or

pay for duty as an offi cer in the Public Health Service.

Which form should I use to subtract

military pay?

For tax years

2008 and after, you may subtract military pay on

Schedule M, Other Additions and Subtractions

for Individuals.

2007 and earlier, you may subtract military pay on

Form IL-1040

see Publication 102 January 2010

Illinois Filing Requirements for Military Personnel

[rich]

Thanks again Hahn for valuable advice.