Military spouse's state taxable income - Spidell

Military spouse's state taxable income

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Message Board Military spouse's state taxable income

This topic contains 2 replies, has 2 voices, and was last updated by Scott Penn 4 months ago.

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  • #160668
    Scott Penn
    Participant

    I have a client that is a CA resident and is military deployed overseas. His spouse is a FL resident and also works overseas as an independent contractor with a company physically located in NY, I think that her state filing follows his residency status. Also, according to PUB 54 she would be able to file Form 2555 for the income tax, just not the S/E Tax? She meets the Physical Presence test. Can I get a confirmation on this? TIA

  • #160794
    Sandy Weiner
    Participant

    She can elect to use his state of residency but doesn’t have to and yes, the foreign income tax exclusion does not apply to Self employment tax.

  • #160827
    Scott Penn
    Participant

    Thank you, Sandy.