State tax Relief for Military Spouses

Relief for Military Spouses

The Military Spouses Residency Relief Act, signed into law on November 11, 2009, provides relief to military spouses by allowing them to file in their domicile state rather than the state of military assignment provided presence (or absence) in that state is due to the service member’s compliance with military orders. Under the Act any income earned by the spouse in a state of domicile is not treated as income earned in that state if that spouse is not treated as a resident of that state. The new rules are effective for any state or local income tax return filed for any tax year beginning in 2009.