Military non-residency status.

[helpplease4]

My son is in the military and no longer lives in Connecticut. (His home of record). Is he a non-resident there for tax purposes?  Does he have to pay taxes in North Carolina, where he now lives?

[DanaB · Accepted solution]

Your son, as an active duty member, can keep his state of legal residence (SLR) – usually his home of record state. Therefore he would be still considered a resident of Connecticut unless he decides to change it. To change the SLR, a DD Form 2058 must be submitted to the local finance officer and accepted.

He might qualify to have his military pay excluded from Connecticut income tax if he meets the requirements, please see  Connecticut Income Tax Information for Military Personnel for more details.

His military pay will not be taxable in North Carolina (the state he is stationed in) and he won't be required to file a North Carolina tax return if his military pay is his only income.

[helpplease4]

Thank you.  A couple of followup questions.  The Connecticut info you referred me to talks about a "domicile" and "permanent place of abode".  My son rents a house near the base.  It is the only place he lives.  Does this qualify as "domicile" and "permanent  place of abode"?
Connecticut instructs him to file a "non-resident" form for the tax year to get his military pay excluded, does he need to change the state of legal residency with the DD From 2058, or leave it alone.  Thanks in advance, your help is much appreciated.

[DanaB]

Yes a house qualifies to be a place abode. If he is happy with his SLR, right now Connecticut, I would leave it alone esp since Connecticut gives him the option to not have to pay tax on the military income if he stationed in other states.

[helpplease4]

Thank you, you've helped a lot.

[helpplease4]

still having a few problems with this.  ON his personal info, I have Connecticut as his State of Residence,
have checked "lived in another State in 2018", It asks for previous state of residence and won't let me put in Connecticut.  What should I put in there and the date he became a resident of his new state?

[DanaB]

Since he is in the military, in the Info section you will only enter Connecticut as his state of residence but check "no" to have lived in another State since he did not become a resident in North Carolina.