Are Moving Expenses Deductibile for Armed Forces members? Read On!

AZ - Deductibility of moving expenses by Armed Forces members addressed

An active duty member of the U.S. Armed Forces who moves pursuant to a military order cannot deduct moving expenses related to that move on his or her Arizona income tax return because the active duty military pay is exempt from Arizona income tax. A full-year Arizona resident active duty Armed Forces member who has included a moving expense deduction in his or her federal adjusted gross income for a move made pursuant to a military order, and who is required to file an Arizona income tax return, must make the following adjustments on the Arizona income tax return:

• subtract from Arizona gross income all of his or her military pay included in federal adjusted gross income; and
• add to Arizona gross income the amount of moving expense deduction included in federal adjusted gross income for the move made pursuant to the military order.

A part-year Arizona resident active duty Armed Forces member who has included a moving expense deduction in his or her federal adjusted gross income for a move made pursuant to a military order must exclude that moving expense deduction in the computation of Arizona gross income.

This ruling supersedes Individual Income Tax Ruling ITR 93-11. Individual Income Tax Ruling ITR 11-4, Arizona Department of Revenue, June 22, 2011

Need more information and help: http://www.thisismytownusa.com/steve-mueller-tax.php
Steve Mueller, C.P.A.