topic Re: 2 state filing in Tax help for military filers

2 state filing

Trell9l — Fri, 21 Jan 2022 18:22:24 GMT

I just recently filed for state with my home of record in Missouri like always since I'm in the military. I've done it for awhile now, but it asked that I should file in Virginia? So I filed both, but never had to do that before. Bought my first house in 2020 in Virginia yet still only filed for Missouri. It now says for the 2021 return I owe Virginia State while Missouri was the actual state that was deducted from all last year? I'm just lost and wondering if this happened because I bought a house in VA so now I'm paying state taxes..? Which still doesn't make since to me. Any help would suffice.

Re: 2 state filing

AmyC — Fri, 21 Jan 2022 03:28:57 GMT

The legal residence of a service member does not change due to duty station. However, it will change if your domicile becomes your permanent home. By purchasing a house, the computer thinks that maybe you have become a VA resident. Of course, if the house becomes a rental later, you will file a VA return for that income. Buying a house does not mean permanent but changing your license, voting, etc would indicate that you have a permanent place of VA in mind.

Re: 2 state filing

SteamTrain — Fri, 21 Jan 2022 14:51:29 GMT

I would hope that you didn't actually file yet...did you Really push the "Transmit" button?

IF you did, and if you are lucky, the IRS will reject your federal tax return, and then the VA and MO tax returns won't go in....then you can remove the VA form entirely. But if the IRS accepts you efile (someday next week), then you're in a state amendment situation for VA...and that can get messy.

As a military member from MO, if you haven't changed your legal state of residence (SLR) to VA with a DD Form 2058, then you do NOT file a VA tax return, unless you had income in VA for working some civilian job (or self-employment job) in VA while off-duty....or getting income from a rental property you own in VA .

If you did have an outside off-duty job in VA (or had income from a VA rental property), then at the bottom of the Personal Info page, you would only then indicate that you had VA income

__________________________

Not sure where you messed up....on the Personal Info page, but when entering yourself, you should-have indicated you were a resident of MO on 31 Dec 2021, and did NOT move during the year. The house ownership is immaterial, unless you rented it out to others.

____________________________

What is my military state of residence? (intuit.com)

_____________________________

Now, if you are married, and the spouse works in VA, then whether a VA tax return is needed depends on his/her SLR, and whether VA taxes were properly, or improperly deducted from his/her pay.