Client married a military man late last year. She is resident of state A, his home of record is state B. She has only state A income, his is only military with state B tax withheld. No children, combat pay or EIC. Would it be best to file federal MFS and then client MFS in state A and spouse MFS in state B? This is a new one for me and I want it to be done right. Thanks!
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Not sure about your state but here in MA, I would file Federal MFJ and MFS for MA and the other state.
Do these taxpayers meet the residency reqirement of your stste?Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR -
Good question. You need to review the Military Spouse Relief Act which all states must adhere to. I have a military client for which I file MFJ on the federal and MFS for the two states of residency. Just because there is withholding in one state, does not mean they meet the residency requirement. In fact, I have to file 3 state returns because the withholding is for a state in which he is not a resident, so it is fully refunded every year. He won't have the disbursing officer change it! Sounds like you will have Part-Year state returns to file if they moved late in the year.Comment
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She is a full year resident here in NY. He is stationed in NY, home of record is MO.Originally posted by ATSMAN View PostComment
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After reviewing MO residency rules for military people, I believe he qualifies as a NR for tax purposes. (TTB All States page MO-1 and MO form NRI))Comment
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And NY has an exception to the "same filing status as federal" rule that will allow her to choose between MFS and MFJ. MFJ is likely to result in tax on husband's military earnings (since he would be treated as a resident), so MFS for NY is probably best. But run your own numbers.Originally posted by Justataxguy View PostComment
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