Does Michigan Tax military spouse?

Therefore, a military spouse who is a Michigan resident and plans to return to Michigan as his/her permanent home should include income earned in the other state on his/her Michigan Income Tax return. A Michigan military spouse may not claim a credit for the income taxes paid to another state.

Can a military spouse move out of State?

When your spouse receives orders to move out of state and you relocate to live with them, you can still claim residency in your home state for tax purposes. This could save you a lot of money if you lived and earned income in a state with no income tax.

Where do you file taxes when your spouse leaves the military?

Your state of legal residence (SLR) – the place you expect to live when your spouse leaves the military – is where you should file your state income taxes. Your spouse’s military pay is taxable by their state of legal residence.

Can a military spouse get a drivers license in another state?

The good news is that most of the time the answer is no. The bad news is that there are still states that don’t give exemptions to military spouses. I’ve heard a lot of people say that the Military Spouse Residency Relief Act (MSRRA) allows military spouses to maintain their driver’s license in their state of residence.

Do you have to pay taxes on military pay in Michigan?

Michigan Retired Military Pay Income Taxes: Military retirement benefits paid to retirees of the Armed Forces are exempt from Michigan individual income tax. Michigan Military Pay Income Taxes: Active duty military pay is exempt from Michigan tax.

Where do military spouses live when they join the military?

For more info, see Military Spouses and State Taxes. Consider Chris, who lived in South Carolina when they joined the military in 2010. This was recorded as their Home of Record and SLR. With Permanent Change of Station (PCS) orders, Chris is now stationed in Maryland and lives in Virginia.

Can a military spouse file state income tax?

If you have non-military earnings, review Civilian Pay Earned by Active Duty Military. IMPORTANT: The Military Spouse Residency Relief Act (MSRRA) describes where spouses of military service members can file state income taxes. For more info, see Military Spouses and State Taxes.

What is your state of residence in the military?

There are two terms used by the military to define your state of residence: Home of Record. Your home of record is the state recorded by the military as your home when you were enlisted, appointed, commissioned, inducted, or ordered in a tour of active duty.

Can you still deduct moving expenses for military spouses?

Are moving expenses still deductible for military after tax reform? Yes. If your spouse is on active duty and receives orders for a permanent change of station (PCS), any moving expenses that are not reimbursed or paid for by the government are deductible from your federal income taxes.