Military Spouse-- VA state income tax issue- (contractor, exemption)

[Jen_OKC]

I am exempt from VA state income tax under the service members relief act. Prior to our move here, other states had a specific tax form for nonresidents utilizing this exemption. However, it appears that VA does not. I reached out to the tax office and was told to file a 763 and then send a letter as to why I didnt pay the state taxes. This is puzzling,there isnt even a spot on the form for the exemption itself. Do I just fille out the form, show that I owe money and send a note saying "no!". Surely I cannot be the only person in this state that falls under this exemption?

Any thoughts? Or if you know of a tax professional that can assist me please send me a mesage.

[VA Yankee]

Originally Posted by Jen_OKC

I am exempt from VA state income tax under the service members relief act. Prior to our move here, other states had a specific tax form for nonresidents utilizing this exemption. However, it appears that VA does not. I reached out to the tax office and was told to file a 763 and then send a letter as to why I didnt pay the state taxes. This is puzzling,there isnt even a spot on the form for the exemption itself. Do I just fille out the form, show that I owe money and send a note saying "no!". Surely I cannot be the only person in this state that falls under this exemption?

Any thoughts? Or if you know of a tax professional that can assist me please send me a mesage.

You are not exempt from paying state tax. In Virginia only the active service member is exempt unless he/she chooses to change their state of residency. If you have moved this year than you would file a state return in both Va and your last state of residency with the income earned be documented on the state return you earned it in.

Check with Family Services on base they should have tax advisers available to answer your questions. During my 20 years we filed state for my wife only because I always maintained my residency elswhere.

[Jen_OKC]

Respectfully, I do NOT have to pay state income taxes based on a law passed in 2009.

Requirements for spouse eligibility


The spouse of a servicemember is exempt from income taxation by a state when all three of these qualifications are met.
The spouse:

1. Currently resides in a state different than the state of his or her domicile;
2. Resides in the state solely in order to live with the servicemember; and,
3. The servicemember is present in the state in compliance with military orders.

NOTE: Some states also require a fourth qualification: The spouse and the servicemember both are able to claim the same domicile.

[ChristineVA]

<a name="NonmilitarySpouseFAQsTop"></a>Military Spouses Residency Relief Act:* Frequently Asked Questions -- Commonwealth of Virginia Department of Taxation

To me, it looks as if you don't have to do anything if you had not wages withheld.

If your employer did take out state tax you would need to:

I qualify for exemption from Virginia income tax under the Military Spouses Residency Relief Act. How do I request a refund of the taxes my employer withheld from my wages?
Use Form 763-S to request a refund. Be sure to complete the questionnaire on the back of the form, and attach the documents requested, including your W-2(s).
What type of documentation do I need to file with Form 763-S?
You must attach copies of your W-2 forms to document the Virginia income tax withheld. If your state of legal residence imposes an income tax, you must also attach a complete copy of the return you filed with that state. Your refund cannot be issued unless all required items are attached. We also suggest that you attach a copy of your military dependent ID card and proof of your spouse’s state of legal residence, such as a copy of a Leave and Earnings Statement (LES), current driver’s license from the state of residence, or DD Form 2058 (State of Legal Residence Certificate). These documents will allow us to quickly resolve any questions that may arise about your residency status during the processing of your claim.

[Jen_OKC]

Christine-

I guess I was so focued on HOW to do it that it never occured to me that I didn't have to file at all. Thank you for pointing that out for me. I filed the correct forms with my employer so I do not need a refund.


Thanks!!!

Originally Posted by ChristineVA

<a name="NonmilitarySpouseFAQsTop"></a>Military Spouses Residency Relief Act:* Frequently Asked Questions -- Commonwealth of Virginia Department of Taxation

To me, it looks as if you don't have to do anything if you had not wages withheld.

If your employer did take out state tax you would need to:

I qualify for exemption from Virginia income tax under the Military Spouses Residency Relief Act. How do I request a refund of the taxes my employer withheld from my wages?
Use Form 763-S to request a refund. Be sure to complete the questionnaire on the back of the form, and attach the documents requested, including your W-2(s).
What type of documentation do I need to file with Form 763-S?
You must attach copies of your W-2 forms to document the Virginia income tax withheld. If your state of legal residence imposes an income tax, you must also attach a complete copy of the return you filed with that state. Your refund cannot be issued unless all required items are attached. We also suggest that you attach a copy of your military dependent ID card and proof of your spouse’s state of legal residence, such as a copy of a Leave and Earnings Statement (LES), current driver’s license from the state of residence, or DD Form 2058 (State of Legal Residence Certificate). These documents will allow us to quickly resolve any questions that may arise about your residency status during the processing of your claim.

[VA Yankee]

Originally Posted by Jen_OKC

Respectfully, I do NOT have to pay state income taxes based on a law passed in 2009.

Requirements for spouse eligibility


The spouse of a servicemember is exempt from income taxation by a state when all three of these qualifications are met.
The spouse:

1. Currently resides in a state different than the state of his or her domicile;
2. Resides in the state solely in order to live with the servicemember; and,
3. The servicemember is present in the state in compliance with military orders.

NOTE: Some states also require a fourth qualification: The spouse and the servicemember both are able to claim the same domicile.

I'll stand corrected, this obviously has come out since I retired in 98...

[lindy112]

Originally Posted by ChristineVA

<a name="NonmilitarySpouseFAQsTop"></a>Military Spouses Residency Relief Act:* Frequently Asked Questions -- Commonwealth of Virginia Department of Taxation

To me, it looks as if you don't have to do anything if you had not wages withheld.

If your employer did take out state tax you would need to:

I qualify for exemption from Virginia income tax under the Military Spouses Residency Relief Act. How do I request a refund of the taxes my employer withheld from my wages?
Use Form 763-S to request a refund. Be sure to complete the questionnaire on the back of the form, and attach the documents requested, including your W-2(s).
What type of documentation do I need to file with Form 763-S?
You must attach copies of your W-2 forms to document the Virginia income tax withheld. If your state of legal residence imposes an income tax, you must also attach a complete copy of the return you filed with that state. Your refund cannot be issued unless all required items are attached. We also suggest that you attach a copy of your military dependent ID card and proof of your spouse’s state of legal residence, such as a copy of a Leave and Earnings Statement (LES), current driver’s license from the state of residence, or DD Form 2058 (State of Legal Residence Certificate). These documents will allow us to quickly resolve any questions that may arise about your residency status during the processing of your claim.

This is right. As a realtor (and, thus, an independent contractor), I send in all this paperwork every year but haven't had to pay state income tax since '09.

[slduvall]

I concur. I had to file major paperwork to recoup the half year the first year they past it and then again for the small portion of the following year (09 and 10.)

But wouldn't have to file anything at all for '11 if my husband hadn't retired on Dec 1 '11.

So getting VA to see that just one month for both me and his is all we owe is going to be a nightmare - had trouble each year when I did have to file - just for my share.

[jyfoster]

I am military active duty. What is my obligation to Virginia if any since my residency is in another state?

[jyfoster]

I am military active duty. What is my income tax obligation to Virginia if any since my residency is in another state?