Military spouse living in MD with servicemember but a CT domiciliary (by the MSRRA - servicemember also domiciled in CT).

[greeneflash]

All her income is from non CT sources, and she does not maintain a CT abode. Does she need to pay CT income tax, or since all her income is from sources out of CT, and she resided outside CT, can she file as a CT nonresident, and be exempt as a non resident for tax purposes?

[ThomasM125]

Per the Connecticut State Department of Revenue Services, you can only avoid having to file a CT tax return if all three of these conditions apply to you:

1. You did not maintain a permanent place of abode in Connecticut
2. You maintained a permanent place of abode outside of Connecticut and
3. You spent 30 days or less in Connecticut

Since she does not have an abode in Connecticut and if she was in CT for less than 30 days, the only remaining requirement would be that she have a permanent abode elsewhere. So, if she was in Maryland indefinitely, then she would not have to file a CT tax return.

You can read more about this here:

https://portal.ct.gov/DRS/individuals/individual-tax-page/income-tax-information-military

[greeneflash]

Thomas,

Thank you.  Yes, she meets all three CT conditions.

So, this means she is NOT filing any state tax return.  She is not filing where we live (MD) because she is a CT resident due to the MSRRA.  She is not filing in CT for the reasons you stated above. 

Am I interpreting this correctly?

[ReneeM7122]

Yes, your spouse does not have to file a MD tax return while she is with you as you are stationed there, as long as her income was not earned there.

[TomD8]

Here is Maryland's law:

Under the Act, a military servicemember’s civilian spouse who is domiciled in a state other than Maryland and who is in this State solely to be with the servicemember serving in compliance with military orders is a nonresident of the State regardless of how long the civilian spouse has resided in the State, and...is not subject to Maryland taxation on income for services performed within this State (e.g. wages, salaries or tips).

https://www.marylandtaxes.gov/forms/Tax_Publications/Administrative_Releases/Income_and_Estate_Tax_R...

Your wife should submit MD Form MW507M to any MD employer.  This will exempt her from MD withholding.  Here's a link to that form:

https://www.marylandtaxes.gov/forms/current_forms/MW507M.pdf

[greeneflash]

@TomD8 Thanks.

I certainly agree she does not owe in MD.  

I also agree with the earlier post that she qualifies as a CT non-resident.  

It is just hard to reconcile that she then owes no state income tax anywhere.