If she is not exempt from VA taxes how does she file? Married filing separate? As I don’t have to file state taxes.
The Military Spouse Residency Relief Act (MSRRA) provides protection to military spouses related to residency, voting, and taxes. When a servicemember leaves his or her home state in accord with military orders, the servicemember’s spouse may retain residency in his or her home state for voting and tax purposes, after relocating from that state to accompany the servicemember. The MSRRA amends the Servicemember Civil Relief Act to include the same privileges to a military servicemember’s spouse.
Some States Require Another Factor:
If she meets the qualifications above she should be eligible. If her employer has been taking out taxes, she will want to file a Non-Resident VA return to get her money back. Also, she needs to notify the employer to stop taking out taxes.
Check with VA Department of Revenue on which form you need to file with her employer.