Question

Will a military spouse owe taxes for their home of record/state of legal residence? I paid NC state taxes all year, & will get those taxes refunded. But my SLR is Idaho.

Forum|Forum|6 years ago
February 19, 2020
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TurboTax Deluxe Online

No, as the spouse of a servicemember in NC for active duty who has domicile in Idaho, yo do NOT owe North Carolina but you will have to file a nonresident North Carolina tax return and claim zero NC income to get a refund of the tax withheld. You can also (if you have not already done so) complete Form NC-4EZ,Employee's Withholding Allowance Certificate, certifying that the spouse is not subject to North Carolina withholding because the conditions for exemption have been met. The spouse certifies the state of domicile and attaches a copy of the spousal military identification card and a copy of the servicemember's most recent leave and earnings statement

K

kelsers14Author

Thank you MaryK1101! That is helpful. I am wondering though if I will now be responsible for Idaho state taxes that I did not pay last year? (Since I was paying NC state tax). I am filling out my Idaho state tax return and it is saying I owe.

JohnB5677

Just to clarify. All military income will only be taxed Federally and in North Carolina. If you or your husband work outside of the military that income is taxable both in the state you're in and carried forward to North Carolina.

So if you earned money in Idaho, you will prepare a non resident Idaho tax return and include only that money that you earned in Idaho. You would then prepare a resident North Carolina tax return that will include the Idaho income, and you will get credit for the taxes paid to Idaho.

If you worked in Idaho in 2018 you do owe taxes to the state. However, you will be able to amend your North Carolina return to take credit for taxes paid to Idaho.

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