Published Date: 10/06/2014
By Pat Rountree
The Military Spouses Tax Relief Act allows qualifying employees to pay income tax in the state of their home residence rather than the state where they are working. To qualify for exemption from income tax in the state where a military spouse is employed, the spouse must:
- Currently reside in a state different than the state of domicile;
- Reside in the state solely in order to live with the servicemember; and,
- The servicemember is present in the state in compliance with military orders.
Some states (not including NC) require a fourth qualifier:
- The servicemember and spouse claim the same domicile.
The North Carolina Department of Revenue has information on what is required to claim this exemption from North Carolina earned income. There are also some FAQ’s and other resources available at http://j.mp/ms-rr.
CAI does not give tax advice. However, occasionally, we get questions that may be pertinent to other members and bring those questions to your attention for informational purposes. If you have questions beyond the resources provided, please contact your tax advisor.