topic Military & State in Tax help for military filers

Military & State

vjchavarria — Tue, 27 Aug 2019 18:43:37 GMT

We filed 'Married filing joint' for our federal return. She is Active Duty Military, home of record is Maryland but is living in Virginia. I'm a Virginia Resident, workin in VA and paying VA taxes.

- Is she considered Resident or Non-resident when filing her state tax.

- Do we use the combined AGI from federal return for our separate state returns?

- On the state returns, do we put 'Married filing separate' since we have two separate states but filed jointly for federal?

Re: Military & State

Critter — Fri, 30 Aug 2019 00:55:39 GMT

The new MSRRA rules you can both claim his SLR for income tax purposes so you can file a joint MD return ONLY ... if you cannot get the employer to refund the VA taxes already withheld and stop the withholding then you can file a non resident return showing no VA income to get the unneeded withholding back.

Re: Military & State

TomD8 — Fri, 30 Aug 2019 17:55:43 GMT

If you claim MD residency for state tax purposes, your income from services performed in VA is not subject to VA taxation or withholding.

If you claim MD residency, you should file VA Form VA-4 with your employer, showing that you are exempt from VA withholding: https://www.tax.virginia.gov/sites/default/files/taxforms/withholding/any/va-4-any.pdf

You may obtain a refund of any incorrectly withheld VA taxes by filing VA Form 763-S: https://www.tax.virginia.gov/sites/default/files/taxforms/individual-income-tax/2018/763-s-2018.pdf

See this for full details: https://www.tax.virginia.gov/sites/default/files/inline-files/tb-19-2-military-spouse-veterans-benefits-transitions-act.pdf