I am in the armed forces. What is my residency Status? What is my spouse's residency Status?
Mississippi Resident - If you enter the armed forces when you are a Mississippi resident, you do not lose your Mississippi residency status, even if you are absent from this state on military orders. You are subject to the same residency requirements as any other Mississippi resident and are required to file a Mississippi income tax return.
Non-Resident - If you are not a Mississippi resident but are stationed in this state by military orders, your military income is not subject to Mississippi income tax. However, if you have income subject to Mississippi tax, file Form 80-205 (Non-Resident Form). Mississippi does tax other income earned in this state by you.
The Military Spouses Residency Relief Act (MSRRA), effective January 1, 2009, provides that spouses of military personnel who move to Mississippi due to a servicemember spouse being posted for military duty can keep their former residence for tax purposes. This allows non-resident spouses to exclude Mississippi income if the spouse meets certain criteria, such as filing and paying income tax to the state of residency. For more information regarding the MSRRA please visit www.dor.ms.gov
I serve in the United States military. What income is taxable to Mississippi? Military pay is subject to income tax to the state that is your home of record. If you entered the military in Mississippi, you are presumed to be a resident of Mississippi unless you change that designation.
Does Mississippi exempt any portion of military pay? Yes, income paid to a member of the armed forces as additional compensation for hazardous duty pay in a combat zone designated by the President is exempt from Mississippi Income Tax. The first $15,000 of salary received by those serving in the National Guard or reserve forces is excluded from income. Compensation which qualifies for exclusion includes payment received for inactive duty training (monthly or special drills or meetings), active duty training (summer camps, special schools, cruises) and state active duty (emergency duty.) Full time guard pay is not allowed this exclusion.
I am a Mississippi resident in the military and stationed outside Mississippi. My spouse, who is also from Mississippi but not in the military, is living with me and earning income . Is my spouse still considered a Mississippi resident? Is my spouse still required to pay taxes to Mississippi on income earned outside Mississippi?
Yes, your spouse is a Mississippi resident unless your spouse has taken steps to change his/her domicile to another state. If your spouse is a Mississippi resident who earned income that was taxed by another state, you may be able to claim a credit for such tax on your Mississippi return. (See Military Spouses Residency Relief Act, above).