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    Confusing state return question

    Confused about proseries state return. Situation is, married couple are filing MFJ. Guy is military and lived in AL last year till September. Moved to VA in September. Wife lived and worked in VA all of 2019. How do I go about doing the State return?” Because he’s a resident now in VA but was in AL till September and has no wages in VA. Should I do part year resident for VA or AL? Very confused, as others says he should file MFS under the 760PY for AL time and MFJ for VA time

    #2
    It's often a confusing situation. First thing you have to figure out is the state of residence. There's a good article here:

    When talking with military families about taxes and residences and drivers' licenses, one little thing keeps coming up: the misuse of the term home of record.


    If the military member intended to, and did, change his domicile from AL to VA in September then he will have a part-year AL return and a part-year VA return. That's probably not the case though because then he would probably have VA wages and withholding after he told the military that he had a new domicile. Unless you're saying he was discharged in September and was unemployed after that date, in which case he's no longer covered under the Servicemembers Civil Relief Act.

    If he did not change his domicile then you may have a full year AL for him and a full year VA for her. This is not easy to do in ProSeries and you may end up needing to paper file something.

    Are we having fun yet?

    Rick

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      #3
      You may also want to check the rules for spouses of military persons on Virginia website. Seems they do things differently.

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