State Taxes For Military

[HH-60H]

Questions with another scenario:

My wife's in San Diego, but I'm still in FL. We're also in the process of buying a condo in CA. If I were to switch to FL residency (and register to vote, but NOT change tags over), would we have to file separately this year, and would we run into any problems with the home-buying? Also, we're getting the Cal-Vet Loan. Insight?

You haven't really given us much to work with.....

Are you AD? Is your wife?
What's your current residency? What's your wife's residency?
Does your wife work in CA?

 

[red_stang65]

I am AD, my wife is not but works in CA. She and I are both CA residents.

 

[2sr2worry]

I think the routine goes as follows:

You file in Missouri as resident
She files in CA as resident
You file in CA as non-resident
She may have to file in MO as non-resident.

The issue comes down to making sure each state only "sees" the income that is subject to their taxing authority. If you file federal/joint return, each state will see that amount and be curious about any difference in filing at the state level. That's why you may have to do the non-resident stuff. Download the CA and MO tax handbooks and check eligibility for resident/non-resident categories and you'll be able to figure it out quickly.

 

[HH-60H]

I think the routine goes as follows:

You file in Missouri as resident
She files in CA as resident
You file in CA as non-resident
She may have to file in MO as non-resident.

The issue comes down to making sure each state only "sees" the income that is subject to their taxing authority. If you file federal/joint return, each state will see that amount and be curious about any difference in filing at the state level. That's why you may have to do the non-resident stuff. Download the CA and MO tax handbooks and check eligibility for resident/non-resident categories and you'll be able to figure it out quickly.

Where did MO come from?

Here are the CA rules:
http://www.ftb.ca.gov/individuals/faq/military.shtml

It looks like your wife would file as normal, and you would file as a resident.

Another question though, why are you in FL? TAD/TDY? PCS?

 

[MasterBates]

Are you filing Fed taxes as Married, or Married Filing Separately?

That often works better if you both work, even if one is part time. And it also simplifies the state tax situation.

The first year I was married, we filed separately, with me as a FL resident and the ex as a TX resident, I forget the exact reason, but worked out to a bigger refund that way.

 

[phrogpilot73]

Another question though, why are you in FL? TAD/TDY? PCS?

If you're asking for him to change his residency, I don't think it really matters. All you have to do is physically reside in the state (even for one day), and intend to return. You can use a buddy's address for your address in Florida. Federal rules for residency don't even require that you reside in the state, just that you intend to return.

 

[k_smittay]

If your looking for a good deal to save money, you may want to look at making your residency in arizona. No state taxes for military, 50 year driver license, free auto regsitration every year(done via mail). Not a bad deal if you like saving some money and time.

 

[Schnugg]

Here's where I am. Was a FL resident. Left active service in CA. Became CA resident by default.

Paid taxes to CA.

Back on active duty, moved to MD.

Still a CA resident. Have a CA DL with a MD address.

Pay no CA tax as I earn all my income out of the state.

Pay no MD tax as I'm military non resident in MD.

Wife has no income.

I file
1) Federal joint
2) state of CA single
3) state of MD non-resident single

A good tax guy is a godsend. I've had the same tax guy since '92. Have dealt with investments, inheritance taxes, home purchases and sales. No problem.

It's the best few hundred $$$ I spend a year.
.
.
.
However, when I retire next year and become a MD resident...I'm screwed.