Is my active duty income taxable in my wife's legal residence state?

[Taxfused]

If my AD spouse (civilian) has no source of income herself as a stay-at-home-mom & files a married/separate NC state return, will she be taxed on MY military income?

-I'm AD military legal resident of Illinois (which doesn't tax military pay).

-Civilian wife has North Carolina driver's license and is registered to vote there. (NC taxes military pay, regardless of state stationed).

-We file federally as married/joint

[Vanessa A]

If your spouse does not have income, then she would not need to file a return.  NC is not a community property state so your income is not her income when it comes to taxes.