Question

Military spouse owning a business in VA

Forum|Forum|6 years ago
June 4, 2019
2 replies
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I own a licensed business here but I am a military spouse and our home of record is WA state. I'm trying to do my state taxes for VA but it keeps sending me to a refund form - how do I pay my VA state taxes for my self-employed business?

TurboTax Self Employed Online

T

ToddL

Is your business a sole proprietorship or single member LLC?

T

ToddL

If your self-employed business is a sole proprietorship or single member LLC, you do not have to pay VA income tax on its earnings.

You may have to pay a renewal fee for a business license, but not income tax. You'd only need to file a VA return if you had withheld VA taxes and wanted a refund.

Active-duty military (and their spouses) are considered to live in their state HOR no matter where they are stationed. Their active-duty pay is considered to be earned in their state HOR, and their spouses local income is considered to be earned in their state HOR.

When you complete your Personal Interviews:

Select Washington State as your state of residence on December 31, 2016;
Answer "No" when asked if you "Lived in another state in 2016?" That question only applies if you changed your state of residence in 2016.
Answer "No" when asked if you "Earned money in another state?", unless your military-member had non-military income from VA.