• Military Service Compensation
  • Compensation for Active Service in a Combat Zone by Members of the U.S. Armed Forces
  • Nonresident Military Service Personnel
    
    
• Massachusetts References

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Military Service Compensation

Military service compensation includes not only compensation earned by members of the armed forces for service in a combat zone (which is always excluded from gross income to the extent excluded federally) but also as any other military service compensation.

Nonresident Military Service Personnel:
Military service compensation paid by the United States to its uniformed military personnel assigned to duty at military posts, bases or stations within the commonwealth for services rendered by said personnel while on active duty shall be deemed to be from sources other than sources within the commonwealth.

Nonresident military service personnel with a filing requirement in Massachusetts because they have MA source income other than military source income:

• should not include any military service compensation as non-Massachusetts source income when determining whether they qualify for NTS or LIC;
• should include military service compensation as non-Massachusetts source income when determining the deduction and exemption ratio. Specifically, nonresident taxpayers filing Form 1-NR/PY must include any military service compensation received during the taxable year Line 14e of Form 1-NR/PY.

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Massachusett References:

• TIR 09-23: Effect of the Military Spouses Residency Relief Act
• TIR 04-6: Effect of the Federal Service members Civil Relief Act (P.L. 108-189) on Massachusetts Nonresidents with Military Compensation