Federal Law Gives Service Members And Spouses Special State Tax Benefits

Tax time

The Servicemember's Civil Relief Act (SCRA) prevents you from a form of double taxation that can happen if your spouse works and is taxed in one state and has a permanent legal residence in another.

The SCRA also prevents states from using your income to determine your spouse's tax rate when you have a permanent legal residence in another state.

Under the SCRA, a military spouse may claim the same state of legal residence as their partner for state taxes. Conversely, the spouse can choose to claim the state they are living in as their taxable state, they may also claim the state of legal residence they had prior to marriage in certain cases.

In addition under certain conditions the SCRA will allow you to defer your taxes for up to 180 days after your release from service, if you inability to pay taxes was caused by military service.

For more detailed information on state taxes see our page about Tax Tips for Two State Residents.

Contact your legal office for more information.

Know All Your Legal Rights and Benefits

Be aware and get what you are entitled to. Keep up with all the legal benefits available to you as a service member, veteran or spouse and get updates delivered straight to your inbox by subscribing to Military.com.

Story Continues