Final Answer:
Alan can exclude up to $6000 from his military pay in Oregon, considering the state's provision for active duty pay subtraction. This recognizes the transient nature of military assignments, providing a fair representation of taxable income in the state. Thus the correct option is c. All of the military pay, minus up to $6000 active duty pay earned in Oregon and all active duty pay earned outside Oregon.
Step-by-step explanation:
Alan, being in the military, may qualify for certain tax exclusions related to his active duty pay. In Oregon, there is a provision that allows a subtraction from military pay for active duty performed both in and outside the state. The subtraction is limited to $6000. Therefore, Alan can exclude up to $6000 of his active duty pay earned in Oregon and all active duty pay earned outside Oregon.
The rationale behind this is to recognize that military personnel, who often move frequently due to assignments, may not have a permanent residence in a specific state. The subtraction helps to account for the fact that the individual's presence and earnings are not solely tied to the state of Oregon. In this case, since Alan spent only 60 days on a temporary assignment in Oregon, the subtraction allows for a fair representation of his taxable income in the state.
It's important to note that this exclusion is specific to active duty pay, and other types of income or allowances may have different tax implications. Tax laws can be complex, and individuals in similar situations should consult with a tax professional to ensure accurate compliance with state tax regulations.
Therefore, the correct option is Thus the correct option is c. All of the military pay, minus up to $6000 active duty pay earned in Oregon and all active duty pay earned outside Oregon.