Active Military State Tax Error - Georgia / Texas

Forum|Forum|4 years ago
February 11, 2022
1 reply
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Married filing jointly. Husband is active military. Stationed in Georgia. Texas home of record. Wife works in Georgia. Husband's income is not taxable in Georgia (Texas HOR). Wife's is. TurboTax shows Husband+Wife income as taxable in Georgia and produces a significant lump sum owed to the State.

Anyone know of a solution that would allow only the Wife's Georgia income to be taxed by the state?

This TurboTax software issue may cause us several thousand dollars. Called Customer support, waited on hold for an hour, was abruptly transferred to an "expert." Expert was just the next step in a sales funnel, not technical support.

Best answer by MaryK4

First, if you were not aware. you can elect to have your wife file as a Texas resident if she is living with you. See Military Spouses and State Taxes - TurboTax Support. You would still need to file a Nonresident Georgia tax return to report zero income and get the taxes withheld refunded.

If you are going to file the Georgia return, you have the option of filing a Married separate return, If she is filing as a Georgia resident, this may be the best option, since it looks like TurboTax is including all of your income. See How do I prepare a joint federal return and separate state ...