According to the CT Department of Revenue, "If the servicemember’s domicile is in Connecticut, the military spouse does not qualify for exemption from Connecticut income tax under the MSRRA. Servicemember who is not a Connecticut domiciliary: For Connecticut income tax purposes, a military spouse is considered a nonresident of Connecticut if the servicemember and the military spouse have the same domicile outside of Connecticut and the military spouse is in Connecticut solely to be with the servicemember who is serving in compliance with military orders."
To claim tax-exempt from Connecticut withholdings:
If you meet the requirements to claim exempt status from CT withholding, complete Form CT-W4. Enter Withholding Code “E” on Form CT-W4, Line 1. Provide Form CT-W4 to your employer. You must provide your employer with a copy of your military spouse’s Leave and Earnings Statement (LES) and a copy of your military spouse ID card.
Military spouses claiming exemption from Connecticut income tax under the MSRRA may be required to provide proof that he or she qualifies for the exemption.
To claim a refund of taxes withheld from your Connecticut income, follow these steps in the program:
- State Section
- Deductions from Income
- Other Subtractions
- Description (Military spouse)
- Amount of wages to subtract for the Military spouse
- Save until Exit Connecticut Return
Print, sign and mail the return to the State. Write “Military Spouse” across the top of the return and attach all of the following documents:
- A letter signed by the military spouse stating that he or she is claiming the MSRRA exemption on the wages earned in Connecticut and that he or she meets all the requirements to claim the exemption under the MSRRA;
- The military spouse is choosing to use the state of residence of the servicemember, and the letter must include a statement as such based on the Veteran's and Benefits Act of 2018.
- A copy of the servicemember’s Leave and Earnings Statement; and
- A copy of the military ID issued to the military spouse.
For additional information regarding the MSRRA, Service Members and Veterans requirements, please see CT Income Tax Information for Military Personnel
For additional information see Informational Publication 2019 (5) for Armed Forces Personnel and Veterans.
For additional information, please see the CT 1040 Individual Income Tax Instructions.