Filing state taxes as military stationed overseas

Question

Joined the military recently. My home of record (the state I lived in when I enlisted) is Oregon. I went to school in Mississippi for three months and I'm currently stationed in Germany. When filing for state do I put my home of record? Am I supposed to select Full-year, Part-time, or Non-resident? Thanks in advance.

MatthewD · Answer

Hello Naux - Your home of record will generally be the state where you will be filing resident state tax return while you are still in the military.

Oregon exempts active military duty pay if you are an OR resident stationed outside of the state. If there is state tax withholding on your W2, you can file an Oregon Form OR-40-N to deduct your active military duty pay and get a refund on the state tax withholding.

You can view OR instruction for military members here: https://www.oregon.gov/dor/programs/individuals/pages/military.aspx

hrmbassociate · Answer

If Oregon is still your legal residence (and you didn’t officially change it), then you’d file as a full-year Oregon resident, even though you trained in Mississippi and are now in Germany. Check your LES to confirm what state is listed for tax withholding. That’s usually your answer 👍