Help with filing state of residence

[summer06scott25]

I was active duty military until Aug 30, 2023. Now I am medically retired but I reside in NC and my home of record is TN

[DaveF1006]

It depends. You must file your return in your State of legal Residence (SLR). You may elect Tennessee as your State of legal Residence if Tennessee is considered your permanent legal residence, as demonstrated by a wide variety of factors that include:

• Maintaining voter registration and voting
• Filing and paying state income taxes
• Maintaining a driver’s license
• Registering vehicles and other indicators of intent

Your legal residence as shown by these factors should be the same place as your legal residence indicated on your Leave and Earnings Statement.

If you registered to vote in NC, maintain a driver's license, register vehicles in the state, then your State of legal Residence is North Carolina.

[TomD8]

If you have lived in NC since leaving active duty with the intent of making it your new, main home (your domicile in tax terminology), then for tax purposes your State of Residence is now NC.  

According to this reference, NC does not tax military pensions, including medical retirement.

https://ourncmilitary.nc.gov/blog/2022/02/25/military-pension-tax-exemption

[Hal_Al · Accepted solution]

You became a NC resident 8/30/23.  As such, you file a part year resident return for 2023.  You were a TN resident prior to that date.  Upon retirement, your active duty "Home of record" no longer matters.