Ohio Resident - Stationed out of state, Spouse is not a resident.

Forum|Forum|5 years ago
February 26, 2021
1 reply
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So I am an Ohio Resident stationed in DC. My Spouse is a resident of Maryland. We file jointly on our federal taxes. In years past (doing taxes by hand or using turbotax desktop), my income portion is deducted (military pay while stationed outside OHIO) and the remaining tax on income (my spouse) is offset by the non-resident credit (since the remaining income is all the non-resident portion). However, in turbotax premier online, I can't make this happen. HELP!

TurboTax Premier Online

AmyC

MD resident or OH HOR? Here is the difference.

Ohio active duty, not taxed in Ohio or MD.

Your spouse is MD resident. Spouse pays tax on income to MD.
Spouse OH HOR, then MD income would be exempt.

If you have your spouse marked as a MD resident, the income will be taxable. Please review residency of spouse and what you have marked in the program.

In order to qualify to claim HOR for OH, MSRRA: Military Spouses Residency Relief Act | Military states you must: meet the following conditions:

The service member is stationed under military orders in a state that is not his/her resident state.
The spouse is in that state solely to live with the service member.
Both the service member and spouse have the same resident state.

When those conditions are met, the spouse’s income will be taxed only in the state of legal residency. In your case, you would file a MD nonresident return and an OH resident return.

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TomD8

Section 302 of the Veterans Benefits and Transition Act of 2018 ("VBTA") allows an active-duty servicemember's spouse the option of filing as a resident of the servicemember's state of legal residence, even if the spouse has no other connection with that state.

Thus your wife could choose to file as a resident of OH, which would relieve her of MD taxation. It is her option.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.