My wife got stationed in Hawaii. She claims Connecticut for tax purposes. I decided to claim florida in my state taxes as I only moved to Hawaii to be with her while she is stationed here. I just read about the “Veterans auto and education improvement Act of 2022” and it states that
“ The act provides that a spouse of a servicemember may retain their personal residence or domicile for purposes of taxation. Under the act, a servicemember and the spouse of the member are authorized to elect to use the following locations for purposes of taxation:
the residence or domicile of the member,
the residence or domicile of the spouse, or
the permanent duty station of the member.”
Can she change her domicile for taxation purposes to Florida instead of Connecticut? This is the first I’ve read about this and no one else seems to have heard about this before. Any help would be appreciated
(Reference to the bill)
https://www.congress.gov/bill/117th-congress/house-bill/7939
Can my (civilian) wife (service member) claim FL as her income tax state?
byu/holden_the_golden inMilitaryFinance
Posted by holden_the_golden
3 Comments
If you are a resident of FL, she can use FL for taxes as well.
It’s been a while since I looked at the regs, but it used to say you can claim the state you intend to retire to as well. No reason to ever pay state tax on active duty.
The 2023 Veterans Auto and Education Improvement Act of 2022 allows the active-duty service member and spouse to file state income taxes based on one of three choices: The residence or domicile of the service member, the residence or domicile of the spouse, or the permanent duty station of the service member. The service member Leave and Earnings Statement will indicate which state they are claiming as legal resident. Military service members are not required to change their legal residence when they move to a new state solely because of military orders; they may maintain their legal residence in a state where they have previously established it.
https://www.militaryonesource.mil/financial-legal/taxes/filing-state-income-taxes-in-the-military/