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In Arizona, your military pay is taxed according to the same rules that they are taxed at a federal level
Therefore, combat pay is not taxable - but pay for hazardous duty pay, drills, hardship duty, and submarine pay are taxable except for in the event they were performed in a combat zone
So, if you have military pay that is not from a combat zone, then you will owe tax regardless of whether or not it was withheld from your pay
You can read more, here: http://www.azdor.gov/SearchResults.aspx?Search=military+pay
You have to file a tax return, if you have over $15,000 of gross income, regardless of what your actual taxable income is. So, if you earned more than $15,000 you will still have to file a return even though you may be able to exclude all your military pay
There is another brochure about this topic.
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On the brochure found at http://www.azdor.gov/Portals/0/Brochure/704.pdf
it states on question 6 that you do not need to file if all you income is from active duty military pay, and no state tax was withheld. Would't that mean I didn't need to file?
Thank You for your help, just FYI the publication that you linked and I mentioned was correct , and the other other information that was submitted was incorrect. Was able to resolve the matter with the state.