I'm trying to find a declarative answer about this but are BAS/BAH excluded from NJ taxes?

 

 

New Jersey Residents

If you are a New Jersey resident, you are subject to tax on all your income, regardless of where it is earned, unless the income is specifically exempt from tax under New Jersey law. You must report your military pay (including combat pay) and cost-of-living allowance as taxable income on your resident return. Mustering-out payments, subsistence and housing allowances, and U.S. military pension and survivor’s benefit payments are exempt. You (and your spouse/civil union partner if he or she is also a resident) must file Form NJ-1040 if your income for the entire taxable year from all sources, including your military pay, is more than the filing threshold amount for your filing status.

New Jersey income tax will be withheld from military pay of New Jersey residents. If you have changed your home of record (and domicile) from New Jersey to another state, or you satisfy the three conditions for nonresident status, your military pay is not subject to New Jersey income tax. See Income Tax Withheld From Military Pay for more information.

 

Additionally if you have moved out of state how have you handled the non-resident part of your income taxes?

I'm not AD now but will try to help. Your quote says BAH and BAS are taxable in NJ. It didn't used to be but NJ apparently figures they will tax BAS and BAH now.

 

If you lived in NJ for 6 months and 6 months someplace else and "met the three conditions for nonresident status" the easy way is to take half your income and pay NJ taxes on that. However, if you were promoted, say a month after leaving NJ, you should adjust what you made in NJ. It would be lower because you didn't make that money after promotion in NJ.

As with fumanchu182, I am (no longer) AD, but both my kids are. Their first year in they paid NJ taxes, however since then they both meet the "three conditions for nonresident status" and did not pay NJ taxes. (One lives in MD, the other in NM.)

 

Hope that helps.

As with fumanchu182, I am (no longer) AD, but both my kids are. Their first year in they paid NJ taxes, however since then they both meet the "three conditions for nonresident status" and did not pay NJ taxes. (One lives in MD, the other in NM.)

 

Hope that helps.

 

This does help, thank you, I am heading to MD soon myself.

Don't be fooled by the slightly lower state income tax rate in MD. You have to pay roughly up to 50% more of your state tax as county tax. Don't know if they tax your BAH & BAS.

 

If you're moving to MD you only pay NJ tax for the months you lived in NJ if you meet the three conditions. The remainder of the year you pay MD state tax.

I misread your original post. It says BAS and BAH are exempt from NJ tax. You only pay NJ tax on your base pay.