Does the VBTA apply to dual-military couples?

[dez_15]

Filing taxes jointly this year for myself (active duty, MT resident) and my wife (active duty, WA resident). Can't get a straight answer on if the Veterans Benefits and Transition Act of 2018 applies to us as a dual-military marriage or not?

If so -- even though active-duty wages are exempt in MT -- we'd file state taxes through WA since there's no income tax and on Miltax through H&R Block it pretty much just lets you skip the state filing because of that. Is that legal? Seems too good to be true that for dual-mil couples you could just pick whose state of residence you file jointly through for state taxes?

[DMarkM1]

No.  The Veterans' Benefits and Transition Act follows up the Military Spouse Residency Relief Act (MSRRA).  The MSRRA says the spouse must be in the state solely to be with the military member.   Since your spouse is also stationed there for military duty, the act doesn't apply.  Here is a link with more detailed information on the subject. 

Your spouse can however change their state of residence with their finance office and by taking steps to make a state their new resident state.  Things like registering to vote, registering vehicles, getting a driver's license, as well as being married to someone who is a resident there, would support the state as their resident state going forward.  

[SteamTrain]

@dez_15 

Though for a married couple where both are in the military.....the military member wishing to change their State-of-Legal-Residence (SLR)?   They must actually be posted in the state they want to change it to.  Thus, if the military-MT resident wanted to change their SLR to WA, to match their other military-serving spouse, they must be posted in WA....and not as a TDY....an actual PCS to WA.   

Then they would take the steps to become a legal resident of that state, and file a form DD2058 with HR/Finance (not sure which...but you'd check with them first to find out the details and get the form)