Note: This message is displayed if (1) your browser is not standards-compliant or (2) you have you disabled CSS. Read our Policies for more information.
March 15, 2010
Calling all married active military servicemembers! There is a rule change you need to know about. Last November a new federal law was handed down requiring states to change how they tax (or not tax, depending on the circumstances) income earned by certain nonresident military spouses.
Now don’t get me wrong – the income will probably still be taxed by a state, it’s just which state taxes it that has been changed.
Who exactly does this affect? Well, this may apply to a spouse if:
If this spouse is YOU, you were transferred to and earn income while living in Indiana, then here’s what you need to know:
This deduction is available for tax years 2009 and beyond.
Two other things you need to know. This deduction is so new;
Get Information Bulletin 27 for more information.
If you have already filed your 2009 Indiana tax return, and are just now finding out about this deduction, don’t despair. Just file an amended (corrected) return to claim the deduction.
One more thing – to all you married Indiana servicemembers living in a state other than Indiana, the same rules apply to you, but in reverse. If your non-military spouse earns income from the state where you have been transferred to, tax will not be due to that state. Instead, you must report it on your Indiana tax return.
To find out how other states are handling this, click here to find the state. Once there, enter keywords “military spouse” and follow the prompts.
We appreciate your service. Please contact us if we can be of service to you.
If you would like to submit a question or topic suggestions, please send them to firstname.lastname@example.org