topic Do military spouses who are residences of KY pay KY state income taxes on income earned in KY? in State tax filing

Do military spouses who are residences of KY pay KY state income taxes on income earned in KY?

devyn-slaughter — Tue, 04 Jun 2019 18:39:18 GMT

It depends. If you are a spouse not covered by MSRRA (yo...

DanielV01 — Tue, 04 Jun 2019 18:39:20 GMT

It depends. If you are a spouse not covered by MSRRA (you aren't able to claim the same SLR as your active-duty spouse), then, yes, any money earned in Kentucky will be taxable in Kentucky. Your spouse's active-duty income will not be taxable. However, if you share the same SLR as your spouse and it is not KY, then you would pay tax to your SLR and not KY. Finally if you are both KY residents stationed in KY, your spouse's income is not taxed (KY does not tax active duty), but income that is not active duty (earned by either spouse) is taxable in KY.

For additional information, please see this FAQ on the MSRRA: https://ttlc.intuit.com/replies/3302300

Re: Do military spouses who are residences of KY pay KY state income taxes on income earned in KY?

aleya — Thu, 27 Feb 2020 19:28:51 GMT

@DanielV01 what if both taxpayer and spouse are legal residents of KY but they were stationed in a different state? I know they still file a KY resident tax return and the taxpayer's military income is excluded but does the spouse have to pay KY state tax on earnings from a civilian job in a different state?

Re: Do military spouses who are residences of KY pay KY state income taxes on income earned in KY?

VictoriaD75 — Fri, 28 Feb 2020 04:39:24 GMT

Yes. It is likely the spouse will still have to pay taxes on the civilian income in the nonresident state.

Civilian pay earned by active duty military