If my AD spouse (civilian) has no source of income herself as a stay-at-home-mom & files a married/separate NC state return, will she be taxed on MY military income?
-I'm AD military legal resident of Illinois (which doesn't tax military pay).
-Civilian wife has North Carolina driver's license and is registered to vote there. (NC taxes military pay, regardless of state stationed).
-We file federally as married/joint
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