Active Duty with FL as my home of record. Stationed in VA.
Spouse also claims FL for tax purposes. Works in DC.
My ship is homeport shifting overseas, and I have Category 1 orders. Spouse will remain in VA, because they cannot telework. I will transfer back to VA in ~12 months.
Should my spouse start paying VA state income taxes as soon as the homeport effective date is reached? When the ship finally reaches its new homeport?
We don't meet the "spouse present in Virginia solely to be with your service member spouse who is permanently stationed here in compliance with military orders" clause for the exemption.
Thanks for the help!
(VA) Spouse's State Income Tax & Overseas Assignment
byu/Ir0nSp0rk inMilitaryFinance
Posted by Ir0nSp0rk
1 Comment
Your spouse should continue electing to use FL for purposes of taxation, as allowed by section 18 of H.R.7939 (VAEIA), which is the most recent amendment to the SCRA. “For any taxable year of marriage, a servicemember and their spouse may elect to use for purposes of taxation, regardless of date of marriage, any of the following: domicile of servicemember, domicile of spouse, or permanent duty station of servicemember.” Full text below:
[Text – H.R.7939 – 117th Congress (2021-2022): Veterans Auto and Education Improvement Act of 2022 | Congress.gov | Library of Congress](https://www.congress.gov/bill/117th-congress/house-bill/7939/text)
The “spouse present solely to be with servicemember” clause is only applicable for the civilian spouse to lose or acquire a residence/domicile. For example, if your spouse previously claimed TX residency, they would no longer be able to maintain TX residency when you PCS’ed away and they remained in VA.
(note that you should not refer to FL as your HOR – I’m sure it is, but what’s relevant here is that you’ve maintained FL as your *state of legal residence* or domicile)