Hello Experts,

I was trying to prepare the return of a friend who works as Military Sealift Command in California. He just goes home from the ship at least twice a month.

What got the shock my life is that when I examined his W-2 there is no State Wages in Box 16.

Is this possible? If so, how can I then calculate his tax?

Your help is greatly appreciated.

Thank you so much

justr8hr

Box 16 reports the total amount of taxable wages earned in that state. So box 16 is in fact for state tax. If state taxes are NOT withheld, it should be blank. In general,for military , Different states have different rules for taxing military pay and military retired pay. California does not include military pay in taxable income unless CA is your home of record AND you are stationed in CA .Nonresident military members who receive nonmilitary income from an in-state source must file. Military income is used when computing tax on nonmilitary income.I gues you can contact the ER for more info in detail on his W2

Wnhough,

Thank you so much!