STATE TAXES
Congress has OK’d a new tax break for spouses of armed forces members. They can keep their home state domicile for state income tax purposes if they live with a soldier whose duty station is in another state. The new law applies only to their wages and personal service income, and is retroactive to Jan. 1, 2009.
This helps spouses who hail from states with no income tax or a low rate income tax who wind up moving on account of military orders to a state with a high tax rate. This is causing problems for states, which now must amend their tax forms and withholding forms to handle the late change in the law. Spouses who are eligible for this relief will have to file returns with the state they reside in to get a refund of withheld or estimated taxes as well as
in their home state if it has an income tax.
http://www.businesslately.com/
Congress has OK’d a new tax break for spouses of armed forces members. They can keep their home state domicile for state income tax purposes if they live with a soldier whose duty station is in another state. The new law applies only to their wages and personal service income, and is retroactive to Jan. 1, 2009.
This helps spouses who hail from states with no income tax or a low rate income tax who wind up moving on account of military orders to a state with a high tax rate. This is causing problems for states, which now must amend their tax forms and withholding forms to handle the late change in the law. Spouses who are eligible for this relief will have to file returns with the state they reside in to get a refund of withheld or estimated taxes as well as
in their home state if it has an income tax.
http://www.businesslately.com/
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