Discussion:Military returns

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Discussion Forum Index --> Tax Questions --> Military returns


RWH (talk|edits) said:

21 January 2006
Question: I have a client who was transfered from California to Texas and purchased a home. Will they have to file a mulit-state return? What are the major tax benifits regarding military personnel? Thanks for you help.

TGilliam (talk|edits) said:

21 January 2006
Texas has not state inocme tax. Ordinarily a military resident owes no state income taxes if stationed temporarily in the state.

DZCPA (talk|edits) said:

21 January 2006
Federal return and part year California return will ne needed.

TGilliam (talk|edits) said:

21 January 2006
No california return if only in CA with the Military

DZCPA (talk|edits) said:

21 January 2006
Military living in California file Calornia state tax returns.

TGilliam (talk|edits) said:

21 January 2006
Not if only there becasue of military assignment

TGilliam (talk|edits) said:

21 January 2006
military assigment does not cause residency, hence no state income tax withheld

TGilliam (talk|edits) said:

21 January 2006
If the individual was a california resident first then yes. But normally they are their only for a military assignment in the first place and their residency remains their original state.

RWH (talk|edits) said:

24 January 2006
Thank you for your reply...

So, as far as I understand, if an individual enlist in the armed forces while living in California then at some point is transfered to Texas, they are still considered a California resident and need to file a California return for that portion of income earned while living in California and a Texas return will not be necessary because Texas has no income tax? But what if they purchased a home in Texas?

DR BRISKET (talk|edits) said:

26 January 2006
Military personally are subject to state taxation on their military earnings to the state their home of record is. I have a client who is a Navy recruiter whose home state is Colorado. But, he has been stationed in Wichita, KS. for the past several years. He and his wife purchased a home in the Wichita area, and his wife works a civilian job in Kansas. But, he is still a Colorado resident since he has never changed his home of record. It makes no difference that he purchased a home in Kansas.

Each year, the clients file a resident return with the state of Colorado. His military pay is subject to Colorado taxation. They also file a Kansas non-resident which reports wages his wife earns in Kansas.

In your client's case, since home of record is in California, he will need to file a California state tax return reporting all of his income earned in the military, regardless of where he was stationed.

Www.cpa1.biz (talk|edits) said:

19 March 2007
A note of advice for your military clients. Tell them to claim FL or TX as their state of residence to not owe state income taxes. As a soldier, you are allowed to claim any state as your state of residence. Of course most soldiers claim FL or TX. The ones who do not, I dont know why cause they are just paying more taxes.

Bushmaster (talk|edits) said:

19 March 2007
There is a little more to it than that cpa1. YOu also have to register to vote and have a drivers license (typically) from that state or most PAC NCO's will just give you the run around. The w-2 from the military will answer all of your questions as to where to file.

Www.cpa1.biz (talk|edits) said:

19 March 2007
Bush,

When I was in, they did not ask for that. I guess they have gotten more strict on these residency rules. Ha, you are bringing up memories talking about PAC NCOs. Those NCOs were like GODs when something needed be done.........

Thanks for the info.

Deback (talk|edits) said:

March 19, 2007
Kevin - Please link the last portion of this thread to the Tax Cheats thread.

Kevinh5 (talk|edits) said:

19 March 2007
I was going to turn in unscrupulous preparers too. Giving advice as to how to cheat is as bad as cheating yourself, maybe more, because with your return you are only cheating once. With everyone else's return, you have the opportunity to cheat hundreds of times a year. What was the number for that "finder's fee" form?? Or at least the phone number for the AICPA?

Kwcpa (talk|edits) said:

25 March 2007
Ok - its Sat night & I'm trying to sort this out - H (in military) & wife - residences of Mass. H & W move to LA - H says he is still resident of Mass and has Mass w/holding on military wages. W works in LA and says she is a resident of LA - soooo the question is how do I keep him a resident in Mass all year & w/ her only part-year - in lacerte?? TIA to anyone w/ any ideas.....

Riley2 (talk|edits) said:

25 March 2007
California treats a California resident who is a member of the armed forces as a nonresident while he is stationed outside of California on a permanent change of station order.

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