(Columbia) Feb. 9, 2004 - Some National Guard and Reserve soldiers called to active duty last year may face a big income tax bill April 15th. State income tax was not deducted from the military paychecks for Guard and Reserve troops.

The Defense Financial Accounting System only deducts state income tax for military personnel assigned to a permanent duty station, such as Fort Jackson. Guard and Reserve members called to active duty at military and government installations in the United States or overseas who are not in a combat zone must pay income taxes.

That includes South Carolina guardsmen who guarded al Qaeda and Taliban prisoners at Guantanamo Bay, Cuba. About 100 South Carolina National Guardsman left for one year in Guantanamo back in October of 2002.

South Carolina Department of Revenue spokesperson Dan Brazell says during their deployment, they receive Defense Department checks, but no state income tax was deducted, "For some reason or another, they cannot work this out to where taxes are withheld for the states automatically."

Brazell says the soldiers have come home to learn they now have to pay that state income tax, "If you're in a designated combat area, you're exempt from South Carolina taxes. However, if you're on stateside duty, Guantanamo Bay, some of those areas not designated as combat areas, you may owe South Carolina taxes."

Frankie Neeley of West Columbia was in the Guantanamo Bay deployment. He estimates he'll owe $700 in state income tax he didn't expect, "We're going to have to make some cuts, cut some things back, pay the taxes. It's just going to be a hardship to do so."

A bill in the state Senate would exempt any South Carolina National Guardsman or Reservist taking part in the war on terrorism from paying any state income tax while they're deployed. If it becomes law by tax day, Neeley could be in luck, "I think if you're a guard soldier and you're activated for your country, you should have some kind of exemption. Or at least take taxes out of every check, instead of saying at the end here's a $700 bill and we need it now."

The Department of Revenue says it will work with soldiers who are having trouble paying the tax by April 15th. They also encourage people who are deployed to pay quarterly estimated taxes or set some money aside.

At least 2000 Guard members and reservists from South Carolina have been deployed to the Persian Gulf.

By Jennifer Miskewicz
Updated 6:44pm by BrettWitt with AP