TeresaM
Expert Alumni

Tax help for military filers

Because your husband is active military, you and he both can claim a home of record, even if you are stationed in another state. If your state home of record requires that you file a state return, that will be your resident return. If you have any withholding from pay in the resident state, you will need to file a non-resident return for that state.

You will always want to prepare the federal return, then the non-resident state return, then the resident return. This allows the information to flow so that your resident state can see the taxes in the non-resident state and avoid double taxing the same income. 


In the Personal Info section of the federal return, in the beginning, you will want to be sure that you select, Yes, for I am a member or former member of the U.S. Armed Forces (active, reserve or National Guard) and that you "made money in another state". This will prompt the right questions to set up the states properly.

Alabama does require that you file a state return if it is your home of record. "Military Personnel (Residents). Military personnel, whose legal residence is Alabama, are subject to Alabama income tax on all income regardless of the source or where earned unless specifically exempt by Alabama law."  Some states handle this differently. You may find that you want to change your home of record in the future, so this is one thing to consider.

This TurboTax Help article has additional information and links about military state income taxes. State Military Filing Rules


 

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