In order to qualify, you must both have the same resident state - your post wasn't quite clear on that. Under the Military Spouse Residency
Relief Act (MSRRA), a military spouse may be
exempt from filing and paying taxes to a non-resident state. In order to
qualify for the exemption, all of the following must be true:
- You are both legal residents of the same state;
- You are serving in a non-resident state in compliance
with military orders; and
- Your spouse is residing in the same non-resident state
solely to be with you.
The MSRRA exemption applies to wages,
salaries, and self-employment income earned for services performed in the
non-resident state. This income would instead be taxed by your home
state.
If you are both California residents, the income she earned in Kansas is considered California income for tax purposes. (Even though the employer is based in California, her work was performed in Kansas, so it is treated as if she worked outside the state.)
The State of California grants non-resident status to military members and spouses when stationed out of state, and does not tax income earned while out of state on military orders. If you received unearned income (interest, dividends, etc.) or other California-source income (rental property, etc.), you will file a California return to report that income only.
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