Dual State Military & Civilian Residency Living Overseas

[civmiljoint]

Me: Active Duty Military, Colorado Resident, Stationed Overseas (non-combat zone) for the entire year

Spouse: Government Civilian (MD Wages), Maryland Resident, Stationed Overseas (non-combat zone) for the entire year

Us: Earned rent income from house in Maryland (home is in both our names)

Question: Do we need to file MFJ as Non-Residents for MD or file MFS?

[Carl]

Since you both have MD income, file joint. Not sure about the MD state return, but I'm confident when you file joint, you can indicate you are a NR while your spouse is a resident. But regardless, no matter how you file the MD state return, your spouse files as a resident since that is in fact, their SLR and the rental income is in fact, MD generated income.  Shouldn't be a problem for you to exclude your military income from MD taxation.