According to the Michigan Department of the Treasury: "The Military Spouses Residency Relief Act was signed into law on November 11, 2009, effective for tax years beginning on or after January 1, 2009. It may affect the state income tax filing requirements for a spouse of an individual in the military.
Under the Act, the spouse of an individual in the military is a non-resident of a state and consequently not subject to that state's taxation if:
- The service member is present in that state due to military orders
- The spouse is in that state solely to accompany the service member
- The spouse maintains a domicile in another state
You should file a MI resident return if you have income other than active duty military pay to report.
How do I claim tax-exempt from Michigan withholding?
If you are not subject to income tax withholding, you may qualify to claim exemption status in Michigan. Complete form MI-W4 to claim the exempt status.
How do I claim a refund of taxes withheld from my Michigan income?
To claim a refund of taxes withheld, please go to:
- State Section
- Edit Michigan Nonresident Return
- Subtractions from Income
- Amount included in MI-1040, line 10, from military retirement benefits due to service in the U.S. Armed Forces or Michigan National Guard. Benefits entered in 1099RRB will automatically carryforward
NOTE: Military Spouse income may be taxable on your state return where you file as a resident.