I'm active duty military with Illinois as my home of record. I live in Virginia and earned non-military income in Maryland. How should I file?

jhicks54 — Wed, 05 Jun 2019 22:14:18 GMT

It depends. For tax purposes you are an Illinois domicil...

DanielV01 — Wed, 05 Jun 2019 22:14:19 GMT

It depends. For tax purposes you are an Illinois domiciliary resident since your SLR is Illinois. However, since you have non-active duty income outside of Illinois, you must file that income towards that state. Your situation is actually a little tricky because the question is if you were in Virginia for more than 183 days of the year and maintaining a residence. Here are the two state return possibilities:

You did maintain a residence in Virginia and were present more than 183 days. This would make you a Virginia statutory resident (resident by facts and circumstances of VA state law). In this scenario, you file 3 returns, an IL resident return, a MD nonresident return for mistaken withholdings (if they took out MD tax. MD and VA have a reciprocal agreement and you would have been taxed to VA on that income), and a VA resident return. Prepare the MD and VA returns first, because Illinois will tax your income also taxed by Virginia, but you will get a credit for the taxes you pay to VA. This allows TurboTax to calculate the credit correctly. Also, make sure you indicate that your active duty income is not taxable in Virginia. (Domiciliary Virginia residents pay tax on military income, so since you are not a domiciliary resident of VA your military income is not taxed there).

You did not maintain a VA residence or were present less than 183 days. File a MD nonresident return and an Illinois resident return. The reciprocal agreement does not apply in this situation since you are not considered a VA resident for tax purposes and you worked in MD not VA.

In either case, you want to prepare the IL return after the other states' returns in order to have the credit calculated correctly.

topic I'm active duty military with Illinois as my home of record. I live in Virginia and earned non-military income in Maryland. How should I file? in Tax help for military filers

I'm active duty military with Illinois as my home of record. I live in Virginia and earned non-military income in Maryland. How should I file?

It depends. For tax purposes you are an Illinois domicil...