The Alabama (AL) information for military is that as a nonresident, even if you were stationed in AL, the military pay is not taxable. However you must file a return for any income earned in AL that is not military pay if you meet the filing requirements. For 2022, you will file a resident return for AL since you changed your residency in 2022.
- Single or Married if the income is Over the allowable prorated exemption -- For 2021 that amount is $4,000 for single, $7,700 for Head of Household and $10,500 for married filing joint.
- AL Nonresident Instruction
Nonresidents: Nonresident military personnel merely having a duty station within Alabama (whose legal residence is not Alabama) are not required to file an Alabama income tax return unless they have earned income from Alabama sources other than military pay. If they have earned income in Alabama other than military pay, they are required to file Alabama Form 40NR. A married nonresident military person with income earned in Alabama may file either a separate return claiming himself or herself only, or a joint return claiming the total allowable personal exemption.
- Spouse Rule: The “Military Spouses Residency Relief Act” (Public Law 111-97) states that the income for services performed by the spouse of a service member shall not be deemed to be income for services performed or from sources within a tax jurisdiction of the United States if the spouse is not a resident of the jurisdiction in which the income is earned because the spouse is in the jurisdiction solely to be with the service member serving in compliance with military orders.
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