State taxes

[davisleemichael]

I am in the Military and Florida is my state of residence, including my W2. My spouse is and was employed in Virginia for the entire tax year. How do we file state taxes for my spouse.

[Hal_Al]

“For any taxable year of the marriage, the spouse of a servicemember may elect to use the same residence for purposes of taxation as the servicemember regardless of the date on which the marriage of the spouse and the servicemember occurred.”.

If there was VA withholding she files form  763-S for a refund. I don't think that form is in TT. It looks simple enough to do by hand. 

https://www.tax.virginia.gov/sites/default/files/taxforms/individual-income-tax/2021/763-s-2021.pdf

References:

https://www.tax.virginia.gov/military-spouses-residency-relief-act-faqs

https://ttlc.intuit.com/questions/1901516-military-spouses-and-state-taxes

[ErnieS0]

It depends on your spouse's residency. If she was a Florida resident, her W-2 income would be exempt. Other income may be taxable.

A spouse's income from self-employment will not be exempt if the spouse employs others and/or utilizes significant capital (equipment, vehicles, etc.),

If she is a VA resident, her income will be taxable and she would file as married filing separate for VA. You can still file a joint federal return.

See How do I prepare a joint federal return and separate state returns?

For more help see Military Spouses Residency Relief Act FAQs

[TomD8]

Are you stationed in VA on PCS orders?  If so, Section 302 of the VBTA law of 2018 allows your spouse to claim your SLR of Florida as her state of residence for tax purposes.  As such, she has no tax filing obligation in VA as long as her VA income consists of wages or salaries earned as an employee, or certain limited types of self-employment.

Refs:

https://www.tax.virginia.gov/military-spouses-residency-relief-act-faqs

https://www.jag.navy.mil/legal_services/documents/Info_Paper_2018_SCRA_Amendments.pdf

https://www.americanbar.org/content/dam/aba/events/legal_assistance_military_personnel/ls_lamp_cle_m...