Military non-residency status.

Forum|Forum|6 years ago
June 6, 2019
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My son is in the military and no longer lives in Connecticut. (His home of record). Is he a non-resident there for tax purposes? Does he have to pay taxes in North Carolina, where he now lives?

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Best answer by DanaB27

Your son, as an active duty member, can keep his state of legal residence (SLR) – usually his home of record state. Therefore he would be still considered a resident of Connecticut unless he decides to change it. To change the SLR, a DD Form 2058 must be submitted to the local finance officer and accepted.

He might qualify to have his military pay excluded from Connecticut income tax if he meets the requirements, please see Connecticut Income Tax Information for Military Personnel for more details.

His military pay will not be taxable in North Carolina (the state he is stationed in) and he won't be required to file a North Carolina tax return if his military pay is his only income.

DanaB27Answer

He might qualify to have his military pay excluded from Connecticut income tax if he meets the requirements, please see Connecticut Income Tax Information for Military Personnel for more details.

His military pay will not be taxable in North Carolina (the state he is stationed in) and he won't be required to file a North Carolina tax return if his military pay is his only income.

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helpplease4Author

Thank you. A couple of followup questions. The Connecticut info you referred me to talks about a "domicile" and "permanent place of abode". My son rents a house near the base. It is the only place he lives. Does this qualify as "domicile" and "permanent place of abode"?
Connecticut instructs him to file a "non-resident" form for the tax year to get his military pay excluded, does he need to change the state of legal residency with the DD From 2058, or leave it alone. Thanks in advance, your help is much appreciated.