perezj975
Returning Member

Do i need to file two state returns if my spouse and i residency is in california and she is working in virginia due to me being in the military

 
DavidD66
Expert Alumni

State tax filing

Probably not.  Nonmilitary spouses can use their military spouse's resident state when filing their taxes. The Military Spouse Residency Relief Act (MSRRA) allows a nonmilitary spouse of a service member to keep the same resident state of the military spouse regardless of which state they live in.

 

For more information, see  Military Spouses and State Taxes

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perezj975
Returning Member

State tax filing

Even if she is working in Virgina and getting state tax taken? Because I already did the military act 

BillM223
Expert Alumni

State tax filing

If your spouse's employer withheld Virginia taxes, yet you are both residents of California for tax purposes, she will have to file a Virginia nonresident return showing that she had no Virginia taxable income. This will cause her withholding to be refunded.

 

You should also ask the Virginia employer to stop her withholding since she won't owe any Virginia tax. She can ask if her employer will do withholding for California, but they probably won't. So you two should look at your joint California tax bill and decide if she needs to do some estimated taxes to California through the year.

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