Skip to main content
March 23, 2020
Question

MSRRA Question

  • March 23, 2020
  • 2 replies
  • 0 views

I am domiciled in ID with my husband. I live and work in CA due to his being stationed here. I understand his pay is reportable in ID, but he does not pay CA state taxes and ID does not apply state taxes to his income. I am confused in regards to myself. I have paid CA state taxes over the last year. Under the MSRRA, how do I handle my state taxes? Do I file in CA since I've paid income tax here (despite domicile in ID)? Or is there something else I should be doing in regards to filing in ID?

2 replies

March 23, 2020

Under the MSRRA, how do I handle my state taxes?

          File ID for 2019 to report income

 

Do I file in CA since I've paid income tax here

         Yes, as a nonresident to claim back all withholding

 

 Or is there something else I should be doing 

       See if you need estimates for  ID taxes    

 

See this FAQ

 https://ttlc.intuit.com/community/military/help/military-spouses-and-state-taxes/00/26149

 

SteamTrain
March 23, 2020

@cdelei 

 

Since you claim Idaho as your resident/domicile state under MSRRA, you should fill in a new form DE4 and give it to your CA employer to get CA withholding stopped.  Once it has been stopped for a full year, you wouldn't have to file a CA tax return at all (Unless you had some other type of CA income...( like for being self-employed in CA...or owning a rental property in CA you might get income from). 

 

Every state with an income tax ,that you are posted to, has  a similar withholding form to stop the state taxes from being withheld....then you may only have to file for ID, and not the state you are posted to.

 

You'd check the box at #4.

 

https://www.edd.ca.gov/pdf_pub_ctr/de4.pdf

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*