topic MSRRA Question in Tax help for military filers

MSRRA Question

cdelei — Mon, 23 Mar 2020 05:53:12 GMT

I am domiciled in ID with my husband. I live and work in CA due to his being stationed here. I understand his pay is reportable in ID, but he does not pay CA state taxes and ID does not apply state taxes to his income. I am confused in regards to myself. I have paid CA state taxes over the last year. Under the MSRRA, how do I handle my state taxes? Do I file in CA since I've paid income tax here (despite domicile in ID)? Or is there something else I should be doing in regards to filing in ID?

Re: MSRRA Question

ee-ea — Mon, 23 Mar 2020 06:39:40 GMT

Under the MSRRA, how do I handle my state taxes?

File ID for 2019 to report income

Do I file in CA since I've paid income tax here

Yes, as a nonresident to claim back all withholding

Or is there something else I should be doing

See if you need estimates for ID taxes

See this FAQ

https://ttlc.intuit.com/community/military/help/military-spouses-and-state-taxes/00/26149

Re: MSRRA Question

SteamTrain — Mon, 23 Mar 2020 15:31:04 GMT

@cdelei

Since you claim Idaho as your resident/domicile state under MSRRA, you should fill in a new form DE4 and give it to your CA employer to get CA withholding stopped. Once it has been stopped for a full year, you wouldn't have to file a CA tax return at all (Unless you had some other type of CA income...( like for being self-employed in CA...or owning a rental property in CA you might get income from).

Every state with an income tax ,that you are posted to, has a similar withholding form to stop the state taxes from being withheld....then you may only have to file for ID, and not the state you are posted to.

You'd check the box at #4.

https://www.edd.ca.gov/pdf_pub_ctr/de4.pdf