topic Help with filing state of residence in State tax filing

Help with filing state of residence

summer06scott25 — Tue, 10 Feb 2026 09:56:10 GMT

I was active duty military until Aug 30, 2023. Now I am medically retired but I reside in NC and my home of record is TN

Re: Help with filing state of residence

DaveF1006 — Wed, 17 Jan 2024 23:16:45 GMT

It depends. You must file your return in your State of legal Residence (SLR). You may elect Tennessee as your State of legal Residence if Tennessee is considered your permanent legal residence, as demonstrated by a wide variety of factors that include:

Maintaining voter registration and voting
Filing and paying state income taxes
Maintaining a driver’s license
Registering vehicles and other indicators of intent

Your legal residence as shown by these factors should be the same place as your legal residence indicated on your Leave and Earnings Statement.

If you registered to vote in NC, maintain a driver's license, register vehicles in the state, then your State of legal Residence is North Carolina.

Re: Help with filing state of residence

TomD8 — Wed, 17 Jan 2024 23:20:06 GMT

If you have lived in NC since leaving active duty with the intent of making it your new, main home (your domicile in tax terminology), then for tax purposes your State of Residence is now NC.

According to this reference, NC does not tax military pensions, including medical retirement.

https://ourncmilitary.nc.gov/blog/2022/02/25/military-pension-tax-exemption

Re: Help with filing state of residence

Hal_Al — Thu, 18 Jan 2024 13:00:44 GMT

You became a NC resident 8/30/23. As such, you file a part year resident return for 2023. You were a TN resident prior to that date. Upon retirement, your active duty "Home of record" no longer matters.