Taxpayer was domiciled in CA when entered the military service. Taxpayer now lives in North Carolina due to permanent change of station orders. Taxpayer owns a home in North Carolina. She has an Alaska driver license due to previous order. Taxpayer still has CA state income tax withheld. CA states “California military servicemembers who leave California under PCS orders become nonresidents of California for income tax purposes and military income is not taxable to CA.” North Carolina states “Under the Servicemembers Civil Relief Act, if you are a legal resident of another state who is stationed in North Carolina on military orders, you will not be taxed on your military pay by North Carolina.
To which state, if any, is the military income taxed? Taxpayer does not keep up home in CA while in military (joined right out of high school). Taxpayer stated at some point, she might return to CA. Taxpayer stated she purchased home in North Carolina being cost of rent is about the same as purchasing home. How would other tax preparers handle?
Peggy Sioux
To which state, if any, is the military income taxed? Taxpayer does not keep up home in CA while in military (joined right out of high school). Taxpayer stated at some point, she might return to CA. Taxpayer stated she purchased home in North Carolina being cost of rent is about the same as purchasing home. How would other tax preparers handle?
Peggy Sioux
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