DD Form 2058-1 at a glance
What it is: DD Form 2058-1, the State Income Tax Exemption Test Certificate, enables the service concerned to terminate withholding of State income taxes applicable to your pay for the tax year specified.
Who signs: Sign under SIGN.
A filled-in DD Form 2058-1 example: a New York resident files from Virginia
How to fill out DD Form 2058-1, box by box
Your name and DOD ID number
Enter your name (Last, First, Middle Initial) in box 1 and your DOD ID number in box 2.
Your military address, tax year and state of legal residence
Enter your military address (Street Address, City, State, Zip Code) in box 3, the tax year in box 4 and your state of legal residence in box 5.
Your place of abode outside your state of legal residence
In box 6, enter the address of your place of abode outside your state of legal residence (Street Address, City, State, Zip Code).
Certification and signature
In box 7, you certify that you anticipate meeting the three conditions necessary to be exempt from withholding for the calendar year, and declare that you will immediately notify the finance officer of any changes that affect your withholding status.
Sign under SIGN and enter the date (YYMMDD) in box 9.
More rules for DD Form 2058-1
Withholding of State income tax will stop the month after the month in which the certificate is filed. Retroactive adjustments will not be made.
Disclosure is voluntary; however, failure to complete this form will result in withholding of State income taxes from your pay.
The authority is 5 U.S.C. 5517, Withholding State income taxes.
The information obtained will become part of the military pay system of the service concerned and may be disclosed as stated in the applicable system of records notices, T7344, Defense Joint Military Pay System, Reserve Component; T7340, Defense Joint Military Pay System, Active Component; and M01040-3, Marine Corps Manpower Management Information System Records.
If your situation is different
This form is not to be used to change State of legal residence
This form is currently applicable to the States of New Jersey, New York, and Oregon, and is not to be used to change State of legal residence.
All three of the following conditions
Residents of applicable states who enter military service and are assigned to duty outside those States remain residents of those States for tax purposes unless they fulfill all three of the following conditions.
They maintain no place of abode in their State of legal residence during the taxable year.
They do maintain a place of abode outside that State for the entire taxable year.
They spend no more than 30 days in that State during the taxable year.
The following are not considered places of abode under condition 2
An abode maintained while on temporary duty or while attending a specialized training school away from your permanent duty station is not considered a place of abode under condition 2.
A member who is otherwise considered to maintain a place of abode outside his or her State of legal residence does not lose the place of abode solely because of performance of duty at another location if such place of abode is still maintained by the member.
Quarters occupied by a barracks, on shipboard, or in bachelor officer quarters at your permanent duty station are not considered a place of abode under condition 2. This restriction applies only to New Jersey and New York residents.
The spouse and family of a married individual continue to reside in the State of legal residence
If the spouse and family of a married individual in military service continue to reside in the State of legal residence, their abode is considered to be an abode maintained by the service member. Condition 1 would therefore not be met.
Your status under condition 2 is unclear
If your status under condition 2 is unclear, you should consult your legal assistance officer before completing the form.
Sources
[1] DD Form 2058-1 (JAN 2018), State Income Tax Exemption Test Certificate, Washington Headquarters Services (the Official source link on this page).