How do I deduct the military spouse's income on the Georgia return?

According to Georgia Policy Statement IT-2010-1-5, "Under the MSRRA Act, a spouse of a service member may be exempt from Georgia income tax on income from services performed in Georgia if:

1. The service member is present in Georgia in compliance with military orders
2. The spouse is in Georgia solely to be with the service member
3. The spouse maintains domicile in another state
4. The domicile of the spouse is the same as the domicile of the service member."

To claim tax-exempt from Georgia withholdings:

Complete Georgia Form G-4 with the employer(s). The applicable box in Section 8 of Form G-4 should be marked and the form returned to the employer(s).

A new form is required each year by Feb 15th. Complete the rest of the state return as it pertains to you.

To claim a refund for taxes withheld from your Georgia income, go to:

1. State Section
2. NonResident Georgia Return
3. Income Subject to Tax 
4. Enter the spouse's W-2 income to exclude from GA Income.

Military Spouse income may be taxable on your state return where you file as a resident.