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I am a military spouse and have my state of residency as FL but worked in NC in 2018 and had state taxes taken out do I file NC state taxes now?

I am a military spouse and have my state of residency as FL but worked in NC in 2018 and had state taxes taken out do I file NC state taxes now?

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JulieCo
New Member

I am a military spouse and have my state of residency as FL but worked in NC in 2018 and had state taxes taken out do I file NC state taxes now?

Yes, you will need to file a North Carolina return if you would like to see if you are due a refund of your taxes withheld. 

Note, though, if your state of residence of FL meets the requirements of the Military Spouse Residency Relief Act (MSRRA), then your income would not be subject to North Carolina tax.   See the information below from the North Carolina Department of Revenue regarding income earned by military spouses.

Therefore, if you meet the MSRRA criteria (the three items listed in bold in the Military Spouse section below) and you had taxes taken out of your earnings for North Carolina, then you should file a non-resident return for North Carolina and enter 0 as the earnings there to get back the taxes withheld from your paychecks. See the bottom link for information on filing a non-resident return.

If your resident state scenario does not qualify under MSRRA, then you may need to file a resident return, depending upon how long you lived in North Carolina (see guidance in the third paragraph in the military spouse income section below.) 

From North Carolina Department of Revenue:

Military Spouse Income: The Military Spouses Residency Relief Act of 2009 amended the Servicemembers Civil Relief Act to provide that a spouse shall neither lose nor acquire a domicile or residence in a state when the spouse is present in the state solely to be with the servicemember in compliance with the servicemember’s military orders if the domicle or residence is the same for both the servicemember and the spouse.

Therefore, effective for tax years beginning on or after January 1, 2009, the income earned for services performed in North Carolina by a spouse of a servicemember who is legally domiciled in a state other than North Carolina is not subject to North Carolina income tax if (1) the servicemember is present in North Carolina solely in compliance with military orders; (2) the spouse is in North Carolina solely to be with the servicemember; and (3) the spouse is domiciled in the same state as the servicemember. All three conditions must be met to qualify for exemption.

If you are the spouse of a servicemember who is a legal resident of North Carolina, the Revenue Department does not assume that you are a North Carolina resident because of marriage. Your residency is based on your individual circumstances. If you filed a joint federal return and one of you was a nonresident of North Carolina who had no North Carolina taxable income, you may file a joint State return. Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return. However, you still have the option of filing your State return as married filing separately. If you choose to file a separate North Carolina return, you must complete either a federal return as married filing separately reporting only your income, deductions, and exemptions, or a schedule showing the computation of your separate income, deductions, and exemptions and attach it to your North Carolina return. You must also include a copy of your joint federal return unless your federal return reflects a North Carolina address.


Here is information on MSRRA:


Information on filing a non-resident return:





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2 Replies
JulieCo
New Member

I am a military spouse and have my state of residency as FL but worked in NC in 2018 and had state taxes taken out do I file NC state taxes now?

Yes, you will need to file a North Carolina return if you would like to see if you are due a refund of your taxes withheld. 

Note, though, if your state of residence of FL meets the requirements of the Military Spouse Residency Relief Act (MSRRA), then your income would not be subject to North Carolina tax.   See the information below from the North Carolina Department of Revenue regarding income earned by military spouses.

Therefore, if you meet the MSRRA criteria (the three items listed in bold in the Military Spouse section below) and you had taxes taken out of your earnings for North Carolina, then you should file a non-resident return for North Carolina and enter 0 as the earnings there to get back the taxes withheld from your paychecks. See the bottom link for information on filing a non-resident return.

If your resident state scenario does not qualify under MSRRA, then you may need to file a resident return, depending upon how long you lived in North Carolina (see guidance in the third paragraph in the military spouse income section below.) 

From North Carolina Department of Revenue:

Military Spouse Income: The Military Spouses Residency Relief Act of 2009 amended the Servicemembers Civil Relief Act to provide that a spouse shall neither lose nor acquire a domicile or residence in a state when the spouse is present in the state solely to be with the servicemember in compliance with the servicemember’s military orders if the domicle or residence is the same for both the servicemember and the spouse.

Therefore, effective for tax years beginning on or after January 1, 2009, the income earned for services performed in North Carolina by a spouse of a servicemember who is legally domiciled in a state other than North Carolina is not subject to North Carolina income tax if (1) the servicemember is present in North Carolina solely in compliance with military orders; (2) the spouse is in North Carolina solely to be with the servicemember; and (3) the spouse is domiciled in the same state as the servicemember. All three conditions must be met to qualify for exemption.

If you are the spouse of a servicemember who is a legal resident of North Carolina, the Revenue Department does not assume that you are a North Carolina resident because of marriage. Your residency is based on your individual circumstances. If you filed a joint federal return and one of you was a nonresident of North Carolina who had no North Carolina taxable income, you may file a joint State return. Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return. However, you still have the option of filing your State return as married filing separately. If you choose to file a separate North Carolina return, you must complete either a federal return as married filing separately reporting only your income, deductions, and exemptions, or a schedule showing the computation of your separate income, deductions, and exemptions and attach it to your North Carolina return. You must also include a copy of your joint federal return unless your federal return reflects a North Carolina address.


Here is information on MSRRA:


Information on filing a non-resident return:





I am a military spouse and have my state of residency as FL but worked in NC in 2018 and had state taxes taken out do I file NC state taxes now?

Thank you so much for your help!
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