Do military spouses have to pay state tax?

The Veterans Benefits and Transition Act of 2018 allows military spouses to choose the legal residence of their service member for state and local tax purposes, as well as for registering to vote — regardless of whether the spouse has ever lived in that state. So the spouse will pay no state income taxes, either.

Are military spouses exempt from nonresident taxes?

Military spouses may need to declare non-residency or file a non-resident return if they paid a different states taxes in the previous year. The spouse does not inherit the domicile of the servicemember upon marriage.

Can I live in Italy and work remotely for a US company?

Generally speaking, yes — if you are just travelling and not living in the EU full-time. If you’re on vacation, you’re allowed to do work remotely for your employer as you would normally at home. You can’t, however, conduct official business (meet clients or do paid in-person work).

Can spouses be legal residents of different states?

With proper planning, spouses who live in different states can avoid paying unnecessary state taxes. An individual may reside in multiple states, but can have only one domicile — that taxpayer’s fixed, permanent home. Individuals domiciled in a state are automatically considered state residents for tax purposes.

What makes you a resident of a state military spouse?

The Military Spouses Residency Relief Act allows military spouses to declare the same state of legal residency as their spouse. The Veterans Benefits and Transition Act allows spouses to make that choice regardless of when they were married. The spouse is in that state solely to live with the service member.

Can a military spouse keep their residency?

Maintaining your legal residence under MSRRA The SCRA allows active-duty military members to maintain their legal residence in the place they consider home. The Military Spouses Residency Relief Act allows military spouses to declare the same state of legal residency as their spouse.

How do taxes work for military spouses?

So, if you meet the requirements of the Military Spouses Residency Relief Act, both your income and the military income earned by your spouse in the military are free from taxation in the duty station state. Both spouses are subject to tax (income and property) in their home states.