According to www.army.mil, "On November 11, 2009, the President signed into law the Military Spouse Residency Relief Act (MSRRA). This Act, among other things, provides that when a service member leaves his or her home State in accord with military or naval orders, the service member's spouse may retain residency in his or her home State for voting and tax purposes, after relocating from that State to accompany the service member."
To claim tax-exempt from Delaware withholdings:
Form W-4DE will need to be filed with the employer to claim exempt from Delaware taxes. You must include copies of:
- Military Spouse's latest Leave and Earnings Statement
- Current Military ID (Issued within the last 4 years)
To claim a refund of taxes withheld from your Delaware income, follow these steps:
- State Section
- Delaware Nonresident Return
- Basic Information, Answer: Are you a Full Year Nonresident? Answer and click Save.
- Federal Income Subject to Tax and enter the Adjustment to State Wages as a negative (-) number.
NOTE: Military Spouse income may be taxable on your state return where you file as a resident.