On Feb 25, 10:14*am, Tom Russ <t...[at]isi.edu> wrote:
- quote -


I agree that the instruction is ambiguous. However, it's extremely
unlikely that NJ would consider military housing (barracks, etc.) to
be a "permanent place of abode." I think what they mean is that
payment for an off-base house or apartment qualifies if it is made
either out-of-pocket or by forfeiture of the quarters allowance.

Here's a more detailed statement, from NJ Technical Bulletin No.
TB-25, 01/11/1994:

"Military Personnel: Residents. A member of the Armed Forces whose
home of record (domicile) is New Jersey when entering the service
remains a resident of New Jersey for income tax purposes, and must
file a resident return even if assigned to duty in another state or
country, unless he or she qualifies for nonresident status. A New
Jersey resident is subject to tax on all income, including military
pay, regardless of where it is earned, unless the income is
specifically exempt from tax under New Jersey law.

"A member of the Armed Forces whose home of record is New Jersey and
who is residing aboard a ship or in barracks, billets or bachelor
officers' quarters is not considered to be maintaining a permanent
home outside of New Jersey and would, therefore remain a resident
taxpayer. However, if a serviceperson pays for and maintains
facilities such as an apartment or a home outside of New Jersey, with
the intent of remaining there permanently and beyond the person's tour
of duty, such individual has changed domicile. In this case, the
serviceperson will no longer be considered a New Jersey resident,
provided or she also satisfies the remaining requirements for
nonresident status."

The words "and beyond the person's tour of duty" are italicized in the
original for emphasis. Thus the bulletin's interpretation of
"permanent place of abode" seems even narrower than the form
instructions.

Of course all this is just the DOR's administrative interpretation of
the statute. There is no case law or regulation on it that I could
find.

Katie in San Diego

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On Feb 24, 7:06*pm, Katie <katiej_1...[at]yahoo.com> wrote:
- quote -

Katie,

I'm not sure about the interpretation that excludes barracks or
other military housing. The reasoning is that if the military member
is being housed in barracks or other military-provided housing, they
then forfeit their quarters allowance.

That is precisely the case that seems to be covered by the clause that
says forfeiture of quarters allowance is sufficient to qualify the
housing as the permanent place of abode outside of NJ. Or am I
reading this incorrectly?

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On Feb 23, 7:05*am, kupc...[at]hotmail.com wrote:
- quote -


Oh, and P.S. -- even if Texas did impose an individual income tax, it
could not tax a NJ resident servicemember's military compensation.
Federal law (the Servicemembers' Civil Relief Act) prevents states
from considering a servicemember to have changed domicile or residence
by virtue of military station assignment. Nor can a state tax a
nonresident servicemember's military compensation on a source basis.

If the member were stationed in a state that does impose an individual
income tax, he would be taxable only on income with a source in that
state. That would include, for example, income earned from a part-
time civilian job, or income from property or business activities
carried on in the state (either directly by the individual or through
a flowthrough entity such as an LLC, partnership, S corporation,
etc.)

If the member owns or rents a home in Texas that he pays for out of
his own pocket, he is not subject to state income tax anywhere.

Katie in San Diego

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On Feb 23, 7:05*am, kupc...[at]hotmail.com wrote:
- quote -


Oh, and P.S.: Even if Texas did impose an individual income tax, an
active duty servicemember stationed there would not be subject to
Texas income tax on his or her military compensation. Federal law
(the Servicemembers' Civil Relief Act) prevents states from
considering a servicemember to have changed domicile or residence by
virtue of military station assignment, nor a state tax military
compensation earned in the state by a nonresident on a source basis.

Katie in San Diego

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On Feb 23, 7:05*am, kupc...[at]hotmail.com wrote:
- quote -


A person who is domiciled in NJ is a resident for tax purposes unless
he or she meets all of three requirements: (1) does not maintain a
permanent place of abode in NJ; (2) does maintain a permanent place of
abode somewhere else; and (3) spends no more than 30 days of the
taxable year in NJ. N.J. Rev. Stat. §54A:1-2(n).

So for military member whose home of record (a convenient proxy for
domicile) is in NJ is a NJ resident while absent on military orders
unless he or she maintains a "permanent place of abode" somewhere
other than in NJ, and meets the other two requirements of the
statute. Here is what the form instructions say about a "permanent
place of abode" for a military member:

"A member of the Armed Forces whose home of record is New Jersey and
who is stationed outside the State (whether living in barracks,
billets, apartment, or house) and does not intend to remain outside
New Jersey, continues to be a resident and must file a resident return
and report all taxable income. However, if a serviceperson pays for
and maintains facilities such as an apartment or a home outside of New
Jersey, either by out-of-pocket payments or forfeiture of quarters
allowance, such facilities will constitute a permanent home outside of
New Jersey. In this case, the serviceperson is not considered a New
Jersey resident for tax purposes."

So a military member domiciled in NJ does not ALWAYS remain a NJ
resident. A barracks or other military housing is not a "permanent
place of abode," but an apartment, condo or house purchased or rented
by the member out of his own pocket is one.

Katie in San Diego

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kupchik[at]hotmail.com wrote:
- quote -

Secondly: A member of the military remains a resident of the
state in which he/she enlisted unless they can show that they
have had a change in residence. As such you would be subject to
tax by NJ if you have remained a resident.

NJ has a publication that explains this. See:
http://www.state.nj.us/treasury/taxa...gi-ee/git7.pdf

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If a NJ resident is stationed in Texas -- where does he pay state
income tax?

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