PARSIPPANY, N.J. // PRNewswire-FirstCall // -- The Military Spouses Residency Relief Act of 2009 could potentially help thousands of active duty service persons and members of the National Guard reduce the complexity of state income tax and personal property tax issues when married, stated Jackson Hewitt Tax Service®. The Company reminds military taxpayers of the Relief Act, along with other tax considerations for the men and women who serve our nation.
"The Military Spouses Residency Act passed into law last year, 2009, and is effective for this year's tax filing season," said Mark Steber, chief tax officer, Jackson Hewitt Tax Service Inc. "The Act was created to reduce the state and local tax burdens on military spouses who follow their partners from state to state. Thanks to this change in the law, military spouses may be eligible to claim the same domicile or resident state as their active-duty spouse with regard to state income taxes, local personal property taxes, and voting status."
Key Provision of the Military Spouses Residency Act
For example, John, a member of the military, lives with his wife Mary in Georgia (their tax home). When John receives orders to move to New York, Mary moves with him and takes a job in the state of New York. However, for tax purposes, Mary is not required to pay taxes on the income she earns in New York, nor is Mary required to pay taxes on any of her interest or dividends earned in her investment accounts. Like John, she is taxed as if she lived and worked in Georgia because it is her home state for tax purposes. In addition, Mary will not be required to pay local personal property taxes to the New York locality on qualifying property (for example, a car) that she owns or co-owns with John.
Not related to income tax filing, but as part of the Act, a military spouse is also now considered to have the same domicile as his or her active duty spouse for voting purposes. This means that Mary no longer has to register to vote in each state she may move to in order to accompany her husband as he fulfills his orders. She is considered eligible to vote in her home state for all federal, state and local elections, though she will need to vote using an absentee ballot.
Other Military Tax Considerations
Military taxpayers can visit Jackson Hewitt's Tax Resource Center to find more details of the provisions applicable to military status.
Jackson Hewitt Tax Service Inc. (NYSE: JTX), with more than 6,000 franchised and company-owned offices throughout the United States, is an industry leader providing full service individual federal and state income tax return preparation. Most offices are independently owned and operated. Jackson Hewitt is based in Parsippany, New Jersey.
SOURCE Jackson Hewitt Tax Service Inc.