Question

Filing Ohio and North Carolina Taxes while living in New Mexico (both active military)

Forum|Forum|6 years ago
March 21, 2020
1 reply
0 views

Hi everyone,

My wife and I are both active military. We're currently stationed in New Mexico, but my wife is a resident of North Carolina and I'm a resident of Ohio--At least according to our W-2's. We also have a rental property in Alabama.

What a mess, I know. I'm looking for someone to confirm that my perception is correct.

Ohio doesn't tax my military pay since I'm stationed outside the state, so I file a return with them and get the full amount back. North Carolina taxes active military legal residents even if they're not stationed within the state. Not sure if my wife can file individually with them, or if we have to file jointly since I'm a non-resident of NC. We jointly own our home in Alabama, so the turbotax software claims that Alabama law requires us to file as non-residents, married filing separately. No idea why. But we only need to report our rental property income. Neither one of us is a legal NM resident and they don't withhold any taxes from either of our paychecks, so no need to file with them.

Is all of this correct?

TurboTax Premier Online

M

MAK70

You can file Ohio to get your withholding back. You can file Joint for North Carolina and file only her active duty/rental pay. You can file Joint for Alabama. You only need to file Alabama if your income is more than $3,000 × Alabama percentage of adjusted total income.