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:
- The service member is present in Georgia in compliance with military orders
- The spouse is in Georgia solely to be with the service member
- The spouse maintains domicile in another state
- 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 their 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, follow these steps in the program:
- Federal Section
- Wages and Salaries, edit the Military Spouse W-2 by removing the information in Box 16. Leave the withholdings listed in Box 17 as this should be the amount refunded to you.
Military Spouse income may be taxable on your state return where you file as a resident.