Posted on Jan 25, 2023
What is the best way to file taxes as dual military when we have different states as Home of Record?
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My wife and I are both active duty and married in March 2022. We are trying to figure out the best way to file this year and if anyone has been in this situation before. My home state is Maryland and her home state is Nevada. We are currently stationed in Honolulu, Hawaii
Dual Military
Taxes
Marriage
Posted 2 y ago
Responses: 7
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Best thing to do is talk with a real tax professional like H&R Block who has experience with military. In the past they would set up a little office on post at the PX/BX.
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MSgt Steven Holt, NRP, CCEMT-P
Just a personal note, I'd recommend someone other than H&R Botch. Royally screwed my taxes up three years in a row. They said I owed when I was actually due a refund. Had to hire a professional accountant to straighten everything out.
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I was a military tax advisor a while back, but you need to either use a tax professional or tax software. I've had excellent results with Turbo Tax for over 20 years.
Some things to look at and think about:
-Federal income tax is pretty much the same wherever you live in the US. In most cases you will file as married filing jointly. You might file separately if one person has exceptionally higher income than the other or complex state filing issues for one person, but not the other. Usually, rare.
-State taxes can be complicated
--Your state residence can be where you physically live, HI, or your home of record MD or NV
--Check DEERS to determine what the Service thinks your home of record is
or look on you monthly pay statement.
--Determine if HI, MD, or NV tax military pay and if any require filing a state return if you're in the military.
--Decide if you or spouse have done anything in 2022 that would change your legal residence to HI, such as registering to vote, getting a HI driver's license, owning property, tagging a car. If you have done some or all of these things, then HI might consider you a resident. You'll have to check state law about a non-resident doing these things. This is where the advice of a lawyer or tax professional, online or in person, may be needed.
--Determine the most advantageous state tax situation for you and your spouse. You may have to file separate state tax returns because you both might be partial-year residents of HI and MD or HI and NV. Best situation is probably to file as a military resident of MD for you and a military resident of NV for your spouse. Then if required you can file HI as a non-resident military member.
For 2023, either both become HI residents or keep your current state residency. To change your residency, do some of the things I noted above; drivers license and tag car are easiest. Then work with your S1 to change DEERS and DFAS. If you change to HI, then you'll be able to keep it until you ETS or PCS to a more advantageous state like Texas or Florida where there's no income tax.
Some things to look at and think about:
-Federal income tax is pretty much the same wherever you live in the US. In most cases you will file as married filing jointly. You might file separately if one person has exceptionally higher income than the other or complex state filing issues for one person, but not the other. Usually, rare.
-State taxes can be complicated
--Your state residence can be where you physically live, HI, or your home of record MD or NV
--Check DEERS to determine what the Service thinks your home of record is
or look on you monthly pay statement.
--Determine if HI, MD, or NV tax military pay and if any require filing a state return if you're in the military.
--Decide if you or spouse have done anything in 2022 that would change your legal residence to HI, such as registering to vote, getting a HI driver's license, owning property, tagging a car. If you have done some or all of these things, then HI might consider you a resident. You'll have to check state law about a non-resident doing these things. This is where the advice of a lawyer or tax professional, online or in person, may be needed.
--Determine the most advantageous state tax situation for you and your spouse. You may have to file separate state tax returns because you both might be partial-year residents of HI and MD or HI and NV. Best situation is probably to file as a military resident of MD for you and a military resident of NV for your spouse. Then if required you can file HI as a non-resident military member.
For 2023, either both become HI residents or keep your current state residency. To change your residency, do some of the things I noted above; drivers license and tag car are easiest. Then work with your S1 to change DEERS and DFAS. If you change to HI, then you'll be able to keep it until you ETS or PCS to a more advantageous state like Texas or Florida where there's no income tax.
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CPT Lawrence Cable
To make it easy, here is the Turbo Tax site on military pay and state taxes. https://ttlc.intuit.com/turbotax-support/en-us/help-article/state-taxes/military-filing-information-state-websites/L9daPm0I3_US_en_US
The way I read it, they will only have to file with Maryland since Nevada doesn't have an income tax and your Military Pay is exempt in Hawaii if you aren't a resident.
The way I read it, they will only have to file with Maryland since Nevada doesn't have an income tax and your Military Pay is exempt in Hawaii if you aren't a resident.
Where can I find state information on filing my return as an active duty military member?
Active duty military file their tax returns in their state of legal residence (SLR)—usually their home of record state. Each state decides whether a service mem
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SGT (Join to see) Does you home states even require you to file? While active duty my home state was Illinois. Illinois didn't have an income tax on people serving in the military so I didn't have to file.
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