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.

  • Author
  • #160668
    Scott Penn

    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

    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

    Thank you, Sandy.