- If you are stationed in a no tax state such as Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming, (one that does not tax military pay or has no income tax), and you intend to live in that state after you separate or retire from the military, consider changing your legal residence to that state. If your state is not one listed here, check to see what their rules are for taxing military pay. For instance, if you are a resident of Connecticut, your military pay will not be taxed if you are not living in Connecticut, and do not spend more than 30 days per year in the state.
- You can change your home of residence by showing that you intend to be a legal resident of that state by registering your car in that state, registering to vote in that state, getting a driver’s license in that state, or buying property in that state. You need a permanent address in that state to do this. If you transfer and sell your house, you no longer have a permanent residence, but if you rent it out and remain on active duty you can claim that state as long as you still have a permanent address in that state.
- Uniform purchases, uniform tailoring, collar devices, ribbons, dry cleaning for uniforms is usually tax deductible, so save your receipts.
U S Naval Academy Alumni Association
USNA Women Shared Interest Group
