Disabled Vet/Active Military MFJ - AZ/VA states - tax exempt property VA

Forum|Forum|5 years ago
March 2, 2021
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I'm a disabled vet married to active duty military. This is the first year our federal taxes will be filed Jointly. We both live in VA - I have been filing in VA and she has been filing in AZ previous years. I receive tax exempt on VA property taxes due to 100% disability.

Trying to figure out how to file in two states. One option: If I file as military spouse (non-resident) with AZ I can ask for VA taxes paid to be returned.(Form 763-S).

Question: Do I lose the tax exempt status for property taxes in VA?

(Otherwise: Looks like I have to complete two mock federal returns with MARRIED FILING SEPARATELY to file the individual states.)

DanaB27

No, you will keep the property tax exemption since this is something that is filed with the county assessor of the county in which the property is located and is separate from the state income tax.

The Veterans Benefits and Transition Act of 2018 allows military spouses to elect to use the same residence as the servicemember for the purposes of taxation, it doesn't change your legal residence.

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