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dan-wimmer
New Member

We are a military family with a home of record in Virginia. We were stationed in NC until retirement in October. Did we "live in one state and work in another?"

 
2 Replies
AlanT222
Expert Alumni

We are a military family with a home of record in Virginia. We were stationed in NC until retirement in October. Did we "live in one state and work in another?"

There are two terms used by the military to define your state of residence:

Home of Record. Your home of record is the state recorded by the military as your home when you were enlisted, appointed, commissioned, inducted, or ordered in a tour of active duty. This is often the state you should continue to use as your tax home as you move from state to state (or overseas) on military orders.

State of Legal Residency. Your state of legal residency (SLR) is your “Home of Record,” unless you changed it to another state. Changing the state on your paycheck records does not change your SLR.

To change the SLR, a DD Form 2058 must be submitted to your local finance officer and accepted.

From a tax standpoint, your State of Legal Residency (SLR) is considered your “domicile” or “resident” state as long as you are on active duty. Even if you are stationed in another state, you’re still considered a resident of your SLR.

To find out if you need to file a state tax return when you aren't stationed in your resident state, check out Military Information on State Websites, which has links for active duty military and their spouses in each state. If you have non-military earnings, review Civilian Pay Earned by Active Duty Military.

IMPORTANT: The Military Spouse Residency Relief Act (MSRRA) describes where spouses of military service members can file state income taxes. For more information, see Military Spouses and State Taxes.

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SteamTrain
Level 15

We are a military family with a home of record in Virginia. We were stationed in NC until retirement in October. Did we "live in one state and work in another?"

This is kind-of a "What did you do after you retired?"

 

1) IF you returned to VA, and have no civilian income (nor a business nor rental property located in NC that you rent to others) then it's unlikely that you lived in one state and worked in another state.   Everything would be VA income in this situation

 

2) IF you retired, and you picked up and went to some state other than VA before the end of the year  (or remained in- NC),  then you  "Moved" from VA to that other state, and you will indicate that move in the MyInfo section.  That requires filing part year tax returns for VA for all income up to your "move", and part-year for the state you moved to for all income after your move.

 

(Generally, a HOR state gives you months or so after separation to either re-establish yourself in the HOR state, or declare your new state.....so some of the "move" dates can get a bit fudgy....but if you remained in NC, then the "move" date is likely the date of your final separation. )

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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