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Returning Member

Military & State

We filed 'Married filing joint' for our federal return. She is Active Duty Military, home of record is Maryland but is living in Virginia. I'm a Virginia Resident, workin in VA and paying VA taxes.

- Is she considered Resident or Non-resident when filing her state tax.

- Do we use the combined AGI from federal return for our separate state returns?

- On the state returns, do we put 'Married filing separate' since we have two separate states but filed jointly for federal?

2 Replies
Level 15

Military & State

The new MSRRA rules  you can both claim his SLR for income tax purposes  so you can file a joint MD return ONLY ... if you cannot get the employer to refund the VA taxes already withheld and stop the withholding then you can file a non resident return showing no VA income to get the unneeded withholding  back. 

Level 13

Military & State

If you claim MD residency for state tax purposes, your income from services performed in VA is not subject to VA taxation or withholding.


If you claim MD residency, you should file VA Form VA-4 with your employer, showing that you are exempt from VA withholding:  https://www.tax.virginia.gov/sites/default/files/taxforms/withholding/any/va-4-any.pdf


You may obtain a refund of any incorrectly withheld VA taxes by filing VA Form 763-S:  https://www.tax.virginia.gov/sites/default/files/taxforms/individual-income-tax/2018/763-s-2018.pdf


See this for full details:  https://www.tax.virginia.gov/sites/default/files/inline-files/tb-19-2-military-spouse-veterans-benef...

**Answers are correct to the best of my ability but do not constitute tax or legal advice.**