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June 6, 2019
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I have a client, both taxpayer and spouse are military stationed in NC with residency in WA. Spouse had a side business in NC, does she have to file an NC return?

  • June 6, 2019
  • 1 reply
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    Best answer by SteamTrain

    Yes// The MSRRA exemption from NC taxes  for a civilian spouse, only applies to W-2 income when working for an employer in NC who issues a W-2 to her.  Self-employment income, is taxed.  She'll need to file a Non-resident NC tax return and include that business income as NC-Source income to be taxed by NC.

    1 reply

    SteamTrain
    Employee
    June 6, 2019

    Yes// The MSRRA exemption from NC taxes  for a civilian spouse, only applies to W-2 income when working for an employer in NC who issues a W-2 to her.  Self-employment income, is taxed.  She'll need to file a Non-resident NC tax return and include that business income as NC-Source income to be taxed by NC.

    ____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*