According to the Ohio Department of Taxation, "...the spouse of a service member, who is domiciled in the same tax jurisdiction as his/her military spouse and is residing in a tax jurisdiction solely due to the military orders of his/her spouse, is excluded from taxation by that jurisdiction on income earned for services performed or from sources within the jurisdiction. However, the service member and spouse may be liable for income tax in their state of residency.
For tax years 2018 and forward, a civilian spouse of a military servicemember can choose to have the same state of legal residence for taxation purposes. This will include the the year the two were married and all following tax years during the marriage.
How do I claim tax-exempt from Ohio withholdings?
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 withholdings?
To claim a refund of taxes withheld from your Ohio income, follow these steps in the program:
- State Section
- 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.
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.