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January 31, 2020
Question

Spouse’s Guam income

  • January 31, 2020
  • 1 reply
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I am active duty Navy stationed in Guam with my wife. We are both Illinois residents. This will be my wife’s first year filing taxes.  My entire income has been military and she worked 2 months at a local store. She received her W-2GU. We originally planned to just file federally joint and file state married but filing separately so we didn’t have to worry about the Guam part and getting it changed over to Illinois. I have been told she either has to file federally and not pay Guam or file Guam and I would have to file married filing separate. The later would cost us some tax credits. I am wondering where I put that income on the 1040/TurboTax questioning.

1 reply

Employee
January 31, 2020

Under MSRRA, your wife may choose to file in your or her domiciliary state (your SLR) for both state and local taxes.  She does not have to file in the state where you and she are stationed under PCS orders.  MSRRA also applies to servicemembers stationed in Guam.  So you and your wife can file jointly in Illinois.  She does not have to file in Guam.  Her Guam income would be taxable only by Illinois.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
January 31, 2020

Thank you for the response. So when I file the taxes with her W-2GU I I put the employee identification number and different business/address show up then what is listed on her W2. Do I ignore that and just input the rest?

Employee
February 1, 2020

You can enter her W-2as is.  The employer info on her W-2 is irrelevant.  Be sure to indicate in TT that you are active duty military.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.