Students interested in this college are also interested in: Colorado State University, University of Washington, University of California, Berkeley, University of Oregon, University of California, Los Angeles, University of California, Santa Barbara. Overview.
These plans areexcluded from tax on your federal return, but not onyour state income tax return. Once you retire and beginto receive pension benefits, you will pay federal tax onyour retirement payments, but you will not pay PA taxon those benefits.
7 people found this helpful. Compensation earned by residents of PA in the armed forces serving on active duty outside PA is not taxable as compensation in PA. If a resident serves active duty within Pennsylvania, the pay is taxable. Non-active status military pay is also subject to tax, regardless of where served. (Source of reference: https://revenue-pa.custhelp.com/app/answers/detail/a_id/266/~/should-i-report-my-active-military-pay...