If my civilian spouse retains her residency in her home state (Texas) and she moves to me and works a job how would she be taxed? Would it work the same as active duty military where she would not pay state taxes because Texas does not require them?
Posted by Xicx_nas
2 Comments
I’m assuming you’re active duty. She can retain TX as her residence and doesn’t owe where she’s actually working (in most cases). You can also claim TX as your tax residence is you’re not already.
Active duty members and their spouses can choose to file taxes in the Servicemembers residence, the spouses residence, or at the duty location. See SCRA including the most recent VIEIA amendments.
MSRRA and VBTA adjusted SCRA to allow spouses to keep their state of residency (or adopt your state of legal residence, even if they never lived there) *if* they moved to your duty station to live with you during your assignment. So yes, their income would be taxable only by Texas (who doesn’t tax income) regardless of what state they work in.