Overseas working military spouse. Help claiming state residency

[clarkeky6742]

I have a Virginia license and voter registration. But no property and have not lived there in 6 years. I'm currently working in Germany and am not sure how to do my state taxes. Va considers me a domicile resident but the tax papers have me as non resident since I do live abroad and keep asking me where and how much money I made in Virginia. But I didn't make it in Virginia. So confused

[ToddL]

I can help.

Do you eventually plan to return to VA? Do you vote there (not just registered)? Is that the place you consider as "home"?

What makes you a resident of a state (or country)? 
Generally, you're a resident of a state (or country) if you intend to either stay there permanently, or return there after a temporary absence. It's where home is – where you come back to after being away on vacation, business trip, overseas or out-of-state employment, or school. Many factors are considered, not the least of which are where you are registered to vote, own homestead property and are licensed to drive.

[clarkeky6742]

According to va law I am a domicile resident because of my license and voter registration ( haven't voted there since 2008). So I need to know how to do my taxes? Did I make money in Virginia? No. My parents live there but that's not my address.  I might return. But my husband has another 12 years in the army. I just don't know how to answer turbo taxes questions

[ToddL]

A little more information and I believe I'll be able to clear this up - who do you work for in GE, how is your GE income reported and what is your husband's home of record (DFAS W-2 box 15)?

[clarkeky6742]

Thank you for your help. I'm a dod civilian so I work for the us government. My income is taxed by the US but I choose to withhold state taxes or not. My husbands home of record is Virginia.

[clarkeky6742]

Thank you so much for the help!!

[ToddL · Accepted solution]

As a military spouse stationed overseas and a resident of VA, you should answer your Personal Interview questions in the following manner.

State of residence is VA (same for your husband)

Do not select "Lived in another state in 2016". That question only applies if you changed your state of residence in 2016. 

Military members and spouses are considered to live in their U.S states of residence, no matter where they are stationed (CONUS or OCONUS)

Answer "No" to the question "Did you earn money in any other states?" With some exceptions that do not apply to your situation, your and your husband's income is treated as earned (and taxed) in your U.S. state of residence.

In the Personal Interview > Mailing address and phone number, you can still designate a mailing address in GE (see attached). Sorry, no international phone numbers allowed here - you can use a relative's U.S. phone number or a dummy number (800-555-1212) if needed to efile.

Consider starting VA withholding; it may make things easier.

[NikkiDeeDeeDee]

If I could piggyback on this comment, I have a similar situation just with one major difference. I am an American living in Germany with a military spouse. I am working on the Germany economy and am paid by my German employer. The last state I lived in prior to moving to Germany was Utah but I never registered to vote in Utah, do not have a Utah drivers license, and do not have any property or any family in Utah and therefore will not be returning to Utah. Prior to Utah, I lived in Illinois. I did not own property there and have no family there, but I was registered to vote there. My IL drivers license has expired and I only have my German license now. My husband’s state of residency is considered Pennsylvania by the military. It was suggested by someone that I could claim PA as my state of residence as well, but I’ve never even lived there before and certainly not earned income there. Because of all of this, why would I still need to have an affiliation with a state? Any help would be great!

[RobertB4444]

Since you're filing a joint tax return with your husband you will indeed claim Pennsylvania as your state of residence, despite having never lived there!  

Since you have no real affiliation with any state that makes the most sense.  He has to file and pay US taxes normally because he's earning money as though he were still in the US.

You are not.  You will take a credit on your federal tax return for taxes paid to Germany for the money that you earned there.  So make sure to file your German taxes first before your US return.

You have to have an affiliation with a state to file a joint tax return which will get you the best possible refund.  

@NikkiDeeDeeDee