schirallicpa Posted February 22, 2012 Report Share Posted February 22, 2012 I'm thinking she will just get hit with ordinary tax and is outside of any deductions in VA. But I have not prepared such a return before. Previously, she was my NY client. I know NY taxes military pay. She is not combat zone nor hazardous duty. Just wondered if any VA's out there had insight. They didn't withhold any VA tax. She actually is stationed out of Rome NY, but has permanently moved to VA. Any thoughts? Quote Link to comment Share on other sites More sharing options...
Hahn1040 Posted February 22, 2012 Report Share Posted February 22, 2012 IS your client active duty military stationed in VA? Active duty military maintains home of record when PCS (permanent change of station) see: On December 19, 2003, the President of the United States signed into law H.R. 100, the Servicemembers Civil Relief Act. This law completely rewrites the Soldiers and Sailors Civil Relief Act of 1940, expanding many of the previous law's civil protections. IF your service member was a resident of New York when she joined the military, then she remains a NY resident. For New York tax info see: http://www.tax.ny.gov/pdf/publications/income/pub361.pdf IF your client is not in NY more than 30 days during the year, does not maintain a permanent place of abode in NY and does maintain a permanent place of abode in another state, then NY does not tax military pay. Thus no NY tax NO VA tax. Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted February 22, 2012 Author Report Share Posted February 22, 2012 I appreciate your answer. But my lingering question is - how can she not have a state of residency. Doesn't she have to belong somewhere? She's certainly hasn't left the country. Quote Link to comment Share on other sites More sharing options...
Hahn1040 Posted February 22, 2012 Report Share Posted February 22, 2012 Confirm: She is active duty military? if yes, then NY remains her home of record Her W-2 says NY However, NY does not tax her as a resident. that is while she is stationed out of NY IF she gets order back to NY, then she is taxed as a resident again Quote Link to comment Share on other sites More sharing options...
Hahn1040 Posted February 22, 2012 Report Share Posted February 22, 2012 fyi: many states do not tax active duty military pay while the resident is stationed out of the state: NY, NJ, IL, CA, PA, OH, OK to name a few. There are others- these are the ones I thought of off the top of my head. For some they file as a resident with active duty pay excluded, others file as nonresident, some don't have to file at all if they do not have any state tax withheld then there are states that give some exclusion or deduction: VA if military income is under $30,000 MD for military stationed out of the country up to $30,000 others tax them the same as any other resident: GA, AL, the favorites with the military are the states with no income tax: FL, TX, WA, TN none of these lists are exclusive Your best bet for finding out how a state taxes the military is to look on the state's tax website Many states have a pub for military THEN if the military member has a spouse, there is a whole set of rules for the spouse. NEW law as of 11/11/09 : Military Spouse residency relief act: http://www.journalofaccountancy.com/Web/20092342 Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted February 22, 2012 Author Report Share Posted February 22, 2012 Again, I appreciate your help. Around here, I don't run into active duty military. Plenty of retired military and a handful of reservists. This was unique to me. Have a good one! Quote Link to comment Share on other sites More sharing options...
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