To deduct a military spouse's income on your Ohio return, you must meet the eligibility requirements under the Military Spouses Residency Relief Act (MSRRA).
Eligibility Requirements
- You can deduct your spouse's income if they meet the following criteria:
- The servicemember is in Ohio due to military orders.
- The spouse is legally married to the servicemember.
- The spouse is a legal resident (domiciliary) of a state other than Ohio.
- The spouse is residing in Ohio solely to be with the servicemember in compliance with military orders.
How do I claim tax-exempt from Ohio withholding?
Military spouses may file an exemption from withholding IT MIL-SP Form with their Ohio employers. Please be advised that this form asks spouses to provide a copy of their military ID card as verification of status; this is specifically authorized by the Department of Defense.
To avoid a tax assessment based on a filing address on a federal return, military nonresident spouses are encouraged to complete and file an IT 10 Form annually when they file their federal return and do not file an Ohio return. This will help to avoid an Ohio tax assessment on the income.
How do I claim a refund for my Ohio tax withholding?
To claim a refund of taxes withheld from your Ohio income, follow these steps in the program:
- State Section
- 3 dots to Edit nonresident Ohio return
- Subtractions from Income
- Certain income earned by military nonresidents and civilian nonresident spouses
- Enter military spouse income as shown in box 16 of the W-2.
- Continue
If you are filing as a non-resident of Ohio, complete Form IT-NRS Ohio Nonresident Statement within the program. The form must be printed, signed and mailed and cannot be e-filed with your return. However, you are able to e-file the Ohio state return and print the Form IT-NRS Ohio Nonresident Statement to mail separately. The mailing address is included on the form.
Military Spouse income may be taxable on your state return where you file as a resident.