Need for State Tax Return (VA): Military Spouse State Residence

[aawolf]

Good morning,

Just wanted to confirm if there is any requirement to do a state tax return if the only claim with the state is to file a return for state taxes withheld as part of the Military Spouse Residency Relief Act.

I am a little frustrated as I have Turbotax Premier and asked this in a live chat with a tax preparer and did not get my question answered before they decided to leave the chat. Not great value for premier. :(

[SteamTrain]

Yes...Only the 2021 763-S would be needed  (I only found a draft copy online, so I'm not sure it's fully ready yet)...make sure you fill it out fully as page 2 has specific things that need to be filled out and sent in, including a "copy" of the civilian spouse's ID card that is issued to civilian family members .

I don' know if TTX has that form, you'd likely have to buy TTX VA software to get it that way.....but since it has to be mailed in, it woudl be jsut as easy to get a copy as PDF is on the state's VA tax website

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Your Spouse needs to file the proper forms with her employer to not have any VA taxes withheld...this would eliminate the need to file any forms to VA, but might be too late for the first part of 2022.

Yoru spouse must also be claiming the same state of residence as you do, and may be subject to state taxes for that state (if it has an income tax)....some do, some don't

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Other situations where a VA non-resident tax return would be required:

1)  the Military member worked an off-duty job in VA...that requires a VA nonresident tax return and is not exempt from VA taxes.

2)  You own a house/land/farm property in VA that you rent out to others for income.    

[aawolf]

Thanks for the detailed response. All of the details are what I understand as well. I was able to find a 763-S tax form and have it printed with all the required supplemental information in the event TTX could not do this for me. The form does require a tax preparer signature on bottom so I had hoped a TTX preparer could at the very least just sign and send back to me.

Thanks for taking the time to respond!

[SteamTrain]

I don't think it requires a preparer signature...only if someone does it for you.

Even your form 1040 has a place for the preparer....TTX enters "Self Prepared" on the Firm's Name line on a 1040.

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No,  TTX won't sign it for you and send it back  (not sure about the TTX Full Service people though)

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If really unsure.... go to your VA tax department website...find a phone number, call, and ask.  Might have to try several times of day.

[TomD8]

If your spouse qualifies for MSRRA, and if she hasn't done so already, she should file Virginia form VA-4 with her employer, checking Box 4.  This will stop the withholding of VA taxes.  Here's a link to the form:

https://www.tax.virginia.gov/sites/default/files/taxforms/withholding/any/va-4-any.pdf