MSRRA

[pkrumbhaar]

I am active duty military living and working just in CA with my wife. She is domiciled AZ, I am domiciled in PA. We believed she qualified for Military Spouse Act – Residency Relief (MSRRA). However, we just learned she does qualify since CA is one of the states that require BOTH spouses need to claim the same domicile. We already paid AZ state taxes for 2016 and 2017. CA is now demanding us to pay CA State taxes. What do we do? Can we get a refund from AZ to pay CA state taxes?

[Carl]

You need to file a CA sate return, and then file an amended AZ state return to see if you get anything back fro AZ.  So the program can figure the math correctly, it's important that the non-resident CA return be the "LAST" return you complete with the program.