According to the Rhode Island Instruction Booklet, "Income for services performed by the service member’s spouse in Rhode Island would be exempt from Rhode Island income tax if the service member’s spouse moves to Rhode Island solely to be with the service member complying with military orders sending the service member to Rhode Island. The service member and the service member’s spouse must also share the same non-Rhode Island domicile”.
To claim tax-exempt from Rhode Island withholdings:
To claim exempt status, you must meet both of the conditions below:
- You are in Rhode Island only to be with your military spouse who is stationed in Rhode Island on military orders AND
- You and your military spouse have the same non-Rhode Island domicile
Complete Form RI W-4 and enter "Exempt-MS" on line 3 of the form. File the form with your employer. Additional information may be required by the employer.
To claim a refund of taxes withheld from your Rhode Island income, follow these steps in the program:
- State Section
- Nonresident Rhode Island Return
- Income Subject to Tax
- Wages - Enter the income earned in Rhode Island while not a resident
- Save and scroll down to
- Net Modifications - Enter the Military Spouse income as a negative amount
- Subtractions From Income
- Active Duty Military Pay of Non-residents and Income from RI for Service Members Spouse-Enter the total military income and spouse's income that is not subject to RI taxes as a positive number.
Military Spouse income may be taxable on your state return where you file as a resident.