Military Spouse Residency Relief Act (MSRRA)

Q:      My husband’s a resident of Florida and I work in Virginia.  I’m confused by what the Military Spouse Residency Relief Act (MSRRA) means for me.

A:      MSRRA allows military spouses the option of aligning their state of domicile along with their service member spouse.  In your case, if you choose Florida as your domicile state, you may be exempt from paying state tax.  However, there is still a lot of confusion regarding the implementation of this law, so it may be a number of months yet before this gets sorted out.  Currently, a number of states are working with the National Association for Tax Accountants to iron out the issues.

With the year quickly coming to a close, the best places for you to start would be the Installation Legal Office and the Personal Income Tax Site for the state in which you reside.  In your case, here is the link to the Virginia Department of Taxation: http://www.tax.virginia.gov/site.cfm?alias=IndWhatsNew 

and one for the Tax Bulletin pertaining to this issue: http://www.tax.virginia.gov/Documents/Military%20Spouses%20Residency%20Relief%20Act%20Tax%20Bulletin.pdf

There is also a Facebook page for the Military Spouses Residency Relief Act where spouses are posting the latest information as they’re making contact with tax officials in their respective states.

VN:F [1.1.8_518]
Rating: 5.5/10 (2 votes cast)

[Post to Twitter]  [Post to Delicious] 


Leave a reply