Thanks for looking at that for me.
I am inclined to get our state taxes on the same page, both in Connecticut, but I do have some concerns.
Would my income fall under the same guidelines here (Resident Working in Another State (ct.gov)) if I were to declare CT as my residency under the MSRRA? Meaning I would pay whatever CT incomes taxes first and then whatever Maryland taxes I would owe on that income, minus a credit for taxes paid to CT? Or would my income only be taxable in CT due to being covered by the MSRRA? It seems like I would only have an obligation to CT as this Maryland publication states (Administrative Release No (marylandtaxes.gov):(
Under the Act, a military servicemember’s
civilian spouse who is domiciled in a state other
than Maryland and who is in this State solely to be
with the servicemember serving in compliance with
military orders is a nonresident of the State
regardless of how long the civilian spouse has
resided in the State, and:
a. Is not subject to Maryland taxation on
income for services performed within this State
(e.g. wages, salaries or tips) — the civilian spouse
must timely, and annually, submit Maryland Form
MW507 and MW507M3
to the employer asserting
and attesting to the civilian spouse’s exempt status
from withholding requirement; and
Also, is it correct that my wife's military income is non-taxed by either Maryland or Connecticut? As CT is considered her state of legal residence but she is working in Maryland for the entire year and files a non-resident tax return with CT which refunds her withheld CT taxes. It seems as though she is correct in that she meets the requirements to have no income tax withheld per CT military personnel guidance:
Income Tax Information-Military (ct.gov)
- You did not maintain a permanent place of abode in Connecticut;
You maintained a permanent place of abode outside Connecticut; and
You spent 30 days or less in Connecticut.
If you meet all three conditions, you are considered a nonresident of Connecticut for the taxable year. You do not have to file a Connecticut income tax return unless you had Connecticut tax withheld or you had any income from Connecticut sources.
And also meets the Maryland requirement to have no taxes withheld per this guidance.
"Military personnel who are legal residents of another state: With military income only Are not required to file a Maryland return" Microsoft Word - tip55.doc (marylandtaxes.gov).
Thank you!
