June 26, 2021 14:31 Updated Follow It is taxable to the state you listed as your military home of record (DD2058) when you entered the service. Visit information for military personnel, or contact the Department of Revenue if you have additional questions. Related articles I am an Indiana resident in the military. My spouse is not an Indiana resident. We filed a joint federal return. How do we file with Indiana? Do I have to figure county tax? I worked in Indiana six months. Then I worked six months in another state. How should I file my Indiana taxes? Can parents of a college student claim the renter's deduction on their tax return? Are gambling winnings taxable?