Need definitive answer whether military academy W-2 income for cadets at USMA (West Point) or USAFA (Colo Springs) and midshipmen at USNA (Annapolis) can be excluded from PA income for PA residents. Military on active duty outside PA, can exclude such income. Question is specific to cadets and midshipmen. Brochures, PA-40 instructions, web site FAQ and telephone call did not yield definite answer. Would rather not mail it in and then wait for an examiner to act, or not. Someone must have walked in these shoes. Thanks.
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Military Pay
I don't have the definitive answer you are looking for, but I do have a couple questions...
What leads you to believe that the income of cadets and midshipmen is any different from the income of any other service member who is on active duty in Pennsylvania?
The income is subject to Pennsylvania taxation just like any other salary or wage, whether civilian or military, unless you can point to a code section that makes it exempt.
I'm not trying to be argumentative, but you may be looking for something that isn't there. If the income in question is not exempt, you're not going to find something that says that. The code and the instructions tell you what is exempt--they don't tell you what isn't exempt.
BMKBurton M. Koss
koss@usakoss.net
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The map is not the territory...
and the instruction book is not the process. -
The question arises due to the income being earned outside PA. My question is, are these persons considered PA residents because they are only temporarily away at school? If so, I would not consider this excludable. In addition, I would not consider this pay "active duty" pay.Comment
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The PA exclusion for military pay earned while on active duty outside the state requires submission of:
" . . . your military orders assigning you to federal active duty outside Pennsylvania."
Would such orders be available for the students you describe?Comment
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