If you are a Pennsylvania resident in the military, the following are not taxable:

• income you earned outside of Pennsylvania while on active duty
• military pay you received while in a combat zone

To enter your federal active-duty pay earned outside Pennsylvania in TaxACT:

1. From within your TaxACT return (Online or Desktop) click on the State Q&A tab, then click on Pennsylvania directly below the blue tabs
2. Click on on Income to expand the category, then click Gross compensation
3. Enter the appropriate information on the screen titled Pennsylvania – Gross Compensation

You can electronically file your Pennsylvania return. However, per the Pennsylvania PA-40 instructions, you would need to fax a copy of your W-2 and military orders (print COMBAT ZONE at the top of your orders) to 717-772-4193 or mail your orders to:

Combat Zone

PA Department of Revenue

Electronic Filing Section

PO Box 280507

Harrisburg, PA 17128-0507