DanielV01
Expert Alumni

Tax help for military filers

It depends.  You may certainly start out in TurboTax Absolute Zero, and if you do not have another tax situation that requires you to upgrade, it is possible that you may be able to file this return.  Here's what I see:

You should be able to file two part-year returns:  DE and CA.  In TurboTax, you will state that you were a resident on December 31 of DE, but you lived in another state, CA.  You will state that your husband was active-duty military, and that he separated from the military in the year.  If you don't have any complications in the Federal portion (not itemizing deductions, no self-employment or other complicated situations), then the only remaining hurdle are the state returns.  It boils down to this question:  were you a CA resident also because of MSRRA?  Your question sounds like you were. If your income was being taxed to CA until your husband separated from the military, and then you informed your employer so they began to withhold for DE instead of CA, you will in fact (likely) be able to use the free version.  You will need to prepare two part-year returns which will split your DE and CA income neatly.  (Side note:  If his active duty income was earned stationed outside of CA, it is not taxable in CA).

It could be a bit more  complicated, however, if your state of residence was not California because MSRRA does not apply to you.  This would be the case if you were not a California resident when you married your husband and never established California residency for yourself.  If this is the case, then the big question will be if you were stationed in Delaware for the entire year before he was separated from the military.  This FAQ on Military Spouse Rules can be a big help for you:  https://ttlc.intuit.com/replies/3302300

If you were not a CA resident yourself, feel free to comment your situation so that I can provide additional guidance.

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