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My wife's income as non-taxable income from the state of HI under MSRRA. She is a TX resident. Should I enter $0 under HI wages because it's an allowable adjustments?

I'm not sure whether to enter $49,015 or $0
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1 Best answer

Accepted Solutions
DS30
New Member

My wife's income as non-taxable income from the state of HI under MSRRA. She is a TX resident. Should I enter $0 under HI wages because it's an allowable adjustments?

If she is covered under MSRRA, she will only file taxes in your state of legal residency (SLR).  So you should not have to file a HI state income tax return if you are stationed in HI. Since TX has no state income taxes, then she will not have a state income tax filing requirement (unless HI withheld taxes from her wages (see below)).

Regarding your active military duty information -

Just make sure that you are letting the TurboTax system know that you are on active military duty and that you are inputting your state of legal residency (SLR) as your resident state. Your SLR is usually your home of record – the state recorded by the military as your home when you joined the military (regardless of where you are stationed).

For example if your SLR is TX but you are stationed in HI, then you will use TX as our resident state in TurboTax.

You may need to edit your personal information under the Personal Info tab (for TurboTax Online sign-in, click Here) to let the TurboTax system know that you are in the U.S. Armed Forces.

You will need to make sure that you select yes -"I am a member or former member of the U.S. Armed Forces (active, reserve or National Guard)".

Also answer "no" to "I lived in another state" (screenshot). Even though you may have lived in a different state, this will not apply if you are on active military service in a state other than your home of record state.

Additionally, if you earned any income outside your military pay in a state that is not your state of record, you will need to file a nonresident state income tax return to recognize this nonmilitary income. Otherwise you will only have a resident state income tax return for your home of record, the state where you lived when you joined the military.

Regarding your wife's VA wage income -

If she is covered under MSRRA, she will only file taxes in your state of legal residency (SLR).

In order to get the full refund of her HI state income tax withholdings, she will need to file a nonresident HI return but report zero "0" income from HI (even though she does have HI wage income). She must mail in this HI nonresident state income tax return and include her state W-2 information. She will want to include an explanatory statement with her HI return stating her situation (that her HI employer withheld HI state income taxes from her wages in error because she is a military spouse and covered under MSRRA).

You can add a state under the state taxes tab in TurboTax.

View solution in original post

4 Replies
DS30
New Member

My wife's income as non-taxable income from the state of HI under MSRRA. She is a TX resident. Should I enter $0 under HI wages because it's an allowable adjustments?

If she is covered under MSRRA, she will only file taxes in your state of legal residency (SLR).  So you should not have to file a HI state income tax return if you are stationed in HI. Since TX has no state income taxes, then she will not have a state income tax filing requirement (unless HI withheld taxes from her wages (see below)).

Regarding your active military duty information -

Just make sure that you are letting the TurboTax system know that you are on active military duty and that you are inputting your state of legal residency (SLR) as your resident state. Your SLR is usually your home of record – the state recorded by the military as your home when you joined the military (regardless of where you are stationed).

For example if your SLR is TX but you are stationed in HI, then you will use TX as our resident state in TurboTax.

You may need to edit your personal information under the Personal Info tab (for TurboTax Online sign-in, click Here) to let the TurboTax system know that you are in the U.S. Armed Forces.

You will need to make sure that you select yes -"I am a member or former member of the U.S. Armed Forces (active, reserve or National Guard)".

Also answer "no" to "I lived in another state" (screenshot). Even though you may have lived in a different state, this will not apply if you are on active military service in a state other than your home of record state.

Additionally, if you earned any income outside your military pay in a state that is not your state of record, you will need to file a nonresident state income tax return to recognize this nonmilitary income. Otherwise you will only have a resident state income tax return for your home of record, the state where you lived when you joined the military.

Regarding your wife's VA wage income -

If she is covered under MSRRA, she will only file taxes in your state of legal residency (SLR).

In order to get the full refund of her HI state income tax withholdings, she will need to file a nonresident HI return but report zero "0" income from HI (even though she does have HI wage income). She must mail in this HI nonresident state income tax return and include her state W-2 information. She will want to include an explanatory statement with her HI return stating her situation (that her HI employer withheld HI state income taxes from her wages in error because she is a military spouse and covered under MSRRA).

You can add a state under the state taxes tab in TurboTax.

My wife's income as non-taxable income from the state of HI under MSRRA. She is a TX resident. Should I enter $0 under HI wages because it's an allowable adjustments?

I am submitting a HI state tax form due to income from a rental property located in HI. I agree that neither my wife's wages or my military wages are subjected to HI taxes, as we are TX residents and she qualifies under MSRRA. On the HI state tax form, Turbotax asks how much of our wages (carried over from the federal form) was from HI sources. Since my wife's wages were 'technically' from a HI source, do I enter her actual earned amount or $0 since those wages are not 'taxable' by HI? Her employers never withdrew HI state taxes from her paychecks because they knew she was a non-resident and not taxed by HI under MSRRA.

My wife's income as non-taxable income from the state of HI under MSRRA. She is a TX resident. Should I enter $0 under HI wages because it's an allowable adjustments?

I am submitting a HI state tax form due to income from a rental property located in HI. I agree that neither my wife's wages or my military wages are subjected to HI taxes, as we are TX residents and she qualifies under MSRRA. On the HI state tax form, Turbotax asks how much of our wages (carried over from the federal form) was from HI sources. Since my wife's wages were 'technically' from a HI source, do I enter her actual earned amount or $0 since those wages are not 'taxable' by HI? Her employers never withdrew HI state taxes from her paychecks because they knew she was a non-resident and not taxed by HI under MSRRA.
DS30
New Member

My wife's income as non-taxable income from the state of HI under MSRRA. She is a TX resident. Should I enter $0 under HI wages because it's an allowable adjustments?

Enter $0 for her wages because although she did "technically" earn them in HI, because of MSRRA, they are not considered HI sourced income.
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