The Military Money Manual Podcast Military Tax & Spouses: "Which State Do I File Taxes In?" Military Spouse Residency Relief Act (MSRRA) with Kate Horrell # 119
Spouse residency rules can sometimes feel very confusing. But today, Kate Horrell helps understand the rules and requirements regarding which state servicemembers and their spouses can use for tax filing purposes. We cover things like:
- What is the SCRA?
- What is the Military Spouse Residency Relief Act?
- What have the recent laws changed regarding military taxes?
- How does my home of record impact my state taxes?
- How do spouses actually have more protection in this area that the servicemember does?
- How does a servicemember's non-military pay get taxed?
The Military Spouse Residency Relief Act (MSRRA) is not a standalone law. It actually updates SCRA. The SCRA was also further amneded under the Veterans Auto and Education Improvement Act of 2022 which stated:
"For any taxable year of marriage, a servicemember AND the spouse of such servicemember may elect to use for purposes of taxation, regardless of the date on which the marriage of the servicemember and the spouse occured, any of the following:
(a) The residence or domicile of the servicemember
(b) The residence or domicile of the spouse
(c) The permanent duty station of the servicemember"
View the full text of the law here.
Read more about these laws on Kate's webiste and her awesome Confidently Prepared Life Binder (avaialble as a fillable PDF too!). KateHorrell.com has a lot of great info on military life, pay, benefits, and college and helpful checklists, and she's a great friend of the show.
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