My wife and I are both active duty. My home of record is Pennsylvania and hers is Virginia. We are stationed in Virginia. I do not pay state Taxes because Pennsylvania exempts me because of active duty. For federal I filed married filing jointly. Then I have to do state taxes separately and mail them in but since I don’t have taxes. Do I need to submit anything to Pennsylvania? Also when doing my spouses married filing separately for Virginia state taxes can I use all of the deductions on hers since I do not submit any state taxes? Hope you can answer. Thank you!
You do not need to submit a tax return for Pennsylvania since your are exempt there.
Your spouse can claim what deductions she would be allowed if you file as married-separate on your federal tax return. In Virginia you must claim the standard deduction if you do that on your federal return, which is probably the case with you.
If you have dependents, your spouse can claim them, as she could if you filed married-separate on your federal return.
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