State taxes in the military

[katherineleigh0]

My husband is active duty in the Navy and we're stationed in Nevada.  His home state of record is Kansas, which he pays taxes to every month.  I have not worked all year and never lived in Kansas, but we will be filing a joint federal return.  How do we get back our state taxes if I'm not a resident? 

[ToddL]

What is your state of residency?

[katherineleigh0]

Nevada, but like I said I did not work in 2016.

[katherineleigh0]

Last year we filed it together and Kansas sent us a letter saying we would be charged over $500 because I'm not a resident.

[ToddL]

Did you have income in 2015?

[katherineleigh0]

No, it made my husband file as a non-residence also because I am.

[ToddL]

I will have to research the KS instructions for 2016 and will update my answer tomorrow. Unfortunately, I have to clock out now.

[ToddL]

Even if you are not a resident of Kansas, if you and your husband file a joint federal return you must also file a joint KS state return and your filing status will be as "non-residents".  

From the Kansas 2016 Tax Booklet: Kansas law provides that if a husband or wife is a resident of Kansas while the other is a nonresident of Kansas, and file a Married Filing Joint federal return, they must file a Married Filing Joint Kansas return and file as “nonresidents” of the state of Kansas. 

The only effect your inclusion on the KS state return will be an additional exemption and the benefits (if any) of filing joint. Under the Military Spouse Residency Relief Act (MSRRA),  your wages will only be taxed by your resident state, if that state has an income tax. The KS state tax interview will give you the opportunity to exclude your income (if any) from your joint KS tax return.

In the future, your tax filing situation may change. As long as your husband remains a KS resident, you will be filing a joint KS return, as non-residents. You may have other tax filing requirements depending on your state of residence (if it changes from NV). If you become a resident of KS, your income will become taxable in KS.