I live in AZ, but work a Navy Reserve job in TX. Does anyone know if that income is taxable by AZ? (Texas has no state income tax but I am an AZ resident)
I believe it is. You pay taxes in the state in which you reside unless you are on active duty in a state other than your state of residence. Check with PSD or the local VITA office at your base in TX. They probably have info on the DFAS and the AZ state tax sites as well.
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