According to the Mississippi State Tax Commission, "The Military Spouses Residency Relief Act (MSRRA) provides that spouses of military personnel who move to Mississippi due to the servicemember spouse being posted for military duty can keep their former residency for tax purposes throughout the marriage. This exemption does not apply if the spouse is already a resident of Mississippi.
In order to be eligible for exemption under the MSRRA the following four requirements must be met by the spouse:
- Spouse currently resides in Mississippi;
- The servicemember spouse is in the state of Mississippi in compliance with military orders.
- Resides in Mississippi solely to live with the servicemember spouse.
- The state of domicile claimed by the servicemember and spouse must be the same."
To claim tax-exempt from Mississippi withholdings:
Claim an exemption from Mississippi income tax withholding on a Form 89-350, line 8, to be filed with the employer. Form DD-2058 needs to accompany the exemption form along with a copy of the Military Spouse ID Card.
To claim a refund of taxes withheld from your Mississippi income:
- State Section
- Mississippi Nonresident Return
- Federal Section
- Wages and Salaries
- Edit your W-2 - Remove the entry for Box 16 of the W-2.
In order to file a return under the MSRRA in Mississippi, the following documents listed below must be submitted with the Non-Resident return.
- Paper file a joint Non-Resident Individual Income Tax Return Form 80-205, no e-filed returns
- Provide a Military Spouse ID Card
- Provide a copy of the Service Member's Driver's License
- Provide a copy of the Federal Form DD-2058.
Military Spouse income is taxable on your state return where you file as a resident.