Section 032. Members Of The Uniformed Services (Rule 032)

Section 63-3013, Idaho Code 01. Servicemembers Civil Relief Act. Section 511 of the Servicemembers Civil Relief Act (50 U.S.C . App. Section 571) provides that a servicemember will neither lose nor acquire a residence or domicile with regard t o his income tax as a result of being absent or present in a state due to military orders. (4-6-23) 02. Servicemember. A servicemember is defined to include any member of the uniformed services a s that term is defined in 10 U.S.C. Section 101(a)(5). A member of the uniformed services includes: (4-6-23) a. A member of the armed forces, which includes a member of the Army, Navy, Air Force, Marin e Corps, or Coast Guard on active duty. It also includes a member of the National Guard who has been called to activ e service by the President of the United States or the Secretary of Defense of the United States for a period of more than thirty (30) consecutive days under 32 U.S.C. Section 502(f), for purposes of responding to a national emergenc y declared by the President and supported by federal funds. (4-6-23) b. The commissioned corps of the National Oceanic and Atmospheric Administration in activ e service; and (4-6-23) c. The commissioned corps of the Public Health Service in active service. (4-6-23) 03. Idaho Residency Status. (4-6-23) a. A servicemember does not become an Idaho resident for income tax purposes by reason of bein g present in Idaho solely in compliance with military orders. (4-6-23) b. A servicemember does not lose his status as an Idaho resident for income tax purposes by reason o f being absent from Idaho solely in compliance with military orders. The safe harbor exception to being a resident a s provided in Section 63-3013(2), Idaho Code, does not apply to a servicemember covered by the federal law. (4-6-23) c. If a servicemember is present in or absent from Idaho for reasons other than compliance with military orders, the standard analysis of residency under Sections 63-3013, 63-3013A, and 63-3014, Idaho Code , applies. (4-6-23) 04

rders. The safe harbor exception to being a resident a s provided in Section 63-3013(2), Idaho Code, does not apply to a servicemember covered by the federal law. (4-6-23) c. If a servicemember is present in or absent from Idaho for reasons other than compliance with military orders, the standard analysis of residency under Sections 63-3013, 63-3013A, and 63-3014, Idaho Code , applies. (4-6-23) 04. Military Service Compensation. (4-6-23) a. Section 511 of the Servicemembers Civil Relief Act (50 U.S.C. App. Section 571) provides that th e military service compensation of a servicemember who is not domiciled in Idaho is not considered income fro m Idaho sources. (4-6-23) b. The military service compensation of a servicemember who is domiciled in Idaho is subject t o Idaho income tax. However, Section 63-3022(h), Idaho Code, provides that compensation paid to a member of th e United States Armed Forces for active-duty military service performed outside Idaho is deducted from taxabl e income in determining the member’s Idaho taxable income. A member of the armed forces does not include the commissioned corps of the National Oceanic and Atmospheric Administration or the commissioned corps of th e Public Health Service, unless they have been militarized by Presidential Executive Order under Title 42, Unite d States Code. (4-6-23) 05. Military Separation Pay. Military separation pay received for voluntary or involuntary separatio n from active military service is not considered military service compensation. Therefore, Subsection 032.04 of thi s rule does not apply. (4-6-23) a. Military separation pay is included in Idaho taxable income only if the recipient is domiciled in o r residing in Idaho when the separation pay is received. (4-6-23) b

tion Pay. Military separation pay received for voluntary or involuntary separatio n from active military service is not considered military service compensation. Therefore, Subsection 032.04 of thi s rule does not apply. (4-6-23) a. Military separation pay is included in Idaho taxable income only if the recipient is domiciled in o r residing in Idaho when the separation pay is received. (4-6-23) b. For purposes of this rule, a former active duty servicemember whose home of record at the time o f separation from the military was a state other than Idaho is not deemed to be residing in Idaho if he moves from Idah o within thirty (30) days from the date of separation from active duty. (4-6-23) 06. Nonmilitary Income. All Idaho source income earned by a servicemember is subject to Idaho taxation except as expressly limited by the Idaho Income Tax Act and these rules. (4-6-23) 07. Spouses of Servicemembers. Beginning on January 1, 2009, Section 511 of the Servicemember s Civil Relief Act also applies to the spouse of a servicemember. (4-6-23) a. If a spouse of a servicemember has the same domicile or state of residency for tax purposes as the servicemember, the spouse of the servicemember does not become an Idaho resident for income tax purposes b y reason of being present in Idaho solely to be with the servicemember who is stationed in Idaho. (4-6-23) b. If a spouse of a servicemember and the servicemember are both Idaho residents for income tax purposes, the spouse of the servicemember does not lose his status as an Idaho resident for income tax purposes b y reason of being absent from Idaho solely to be with the servicemember who is stationed outside of Idaho. (4-6-23) c. If the spouse is not a resident of Idaho for income tax purposes because of the reason stated i n Paragraph 032.07.a. of this rule, income for services performed in Idaho by the spouse will not be deemed to b e income from Idaho sources. (4-6-23)