STATE TAX GUIDE

2019 Edition

(For Tax Year 2018)

STATE TAX GUIDE

For use by U.S. Military VITA/ELF Programs

Prepared by: NR Administrative Law & U.S. Navy Office of the Judge Advocate General, Legal Assistance Policy Division (Code 16) POC: U.S. Navy Office of the Judge Advocate General, Legal Assistance Policy Division 1322 Patterson Ave, SE, Suite 3000 Washington Navy Yard, DC 20374 (202) 685-4637 DSN 325-4637

TABLE OF CONTENTS

INTRODUCTION

ALABAMA

ALASKA [No Income Tax] ARIZONA

ARKANSAS

CALIFORNIA COLORADO CONNECTICUT DELAWARE DISTRICT OF COLUMBIA FLORIDA [No Income Tax] GEORGIA HAWAI'I IDAHO ILLINOIS INDIANA IOWA

KANSAS

KENTUCKY LOUISIANA MAINE MARYLAND MASSACHUSETTS MICHIGAN MINNESOTA MISSISSIPPI

GO MISSOURI

GO

GO MONTANA

GO

GO NEBRASKA

GO

GO NEVADA [No Income Tax]

GO

GO NEW HAMPSHIRE [No Earned GO

Income Tax]

GO NEW JERSEY

GO

GO NEW MEXICO

GO

GO NEW YORK

GO

GO NORTH CAROLINA

GO

GO NORTH DAKOTA

GO

GO OHIO

GO

GO OKLAHOMA

GO

GO OREGON

GO

GO PENNSYLVANIA

GO

GO RHODE ISLAND

GO

GO SOUTH CAROLINA

GO

GO SOUTH DAKOTA [No Income

GO

Tax]

GO TENNESSEE [No Earned Income

GO

Tax]

GO TEXAS [No Income Tax]

GO

GO UTAH

GO

GO VERMONT

GO

GO VIRGINIA

GO

GO WASHINGTON [No Income Tax] GO

GO WEST VIRGINIA

GO

GO WISCONSIN

GO

GO WYOMING [No Income Tax]

GO

Introduction

This guide is intended as a reference for U.S. Military VITA/ELF programs. It is not a comprehensive legal analysis of state tax law; rather, it provides basic information and contact points for each income-tax-levying state. Sites should contact state assistance numbers, or use state websites, for further information!

There are nine states that do not levy any tax on earned income: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Tennessee and New Hampshire do tax certain types of investment income. Earned income tax information about the aforementioned states is not included in this guide.

General Residency Rules: The general rule is that legal residency is established when an individual is physically present in a state AND has the intent to permanently reside in the state. "Intention to permanently reside" can be shown through a combination of several factors: ownership of real property; registering to vote; registering a vehicle; obtaining a driver's license; and declaring of legal residency on legal documents (including DD Form 2058: State of Legal Residence Certificate). One of these factors by itself would probably not be enough to change residency, but if a service member moved to a state and registered to vote, bought a house, registered her car, obtained a new driver's license, and registered her children in the local schools, she would most likely be considered to be a resident of the new state. For example, if you were a legal resident of Delaware when you entered the Armed Forces, you remain a legal resident of Delaware for Delaware state income tax purposes unless you voluntarily abandoned your Delaware residency and established a new legal domicile in another state. A change in legal residence is documented by filing DD Form 2058 and DD Form 2058-1 (State Income Tax Exemption Test Certificate) with your military personnel office.

SCRA Protections for Active Duty Members: Pursuant to the Servicemembers Civil Relief Act (SCRA), active duty service members are able to maintain legal residency in one state while physically stationed in another state. Thus, the SCRA protects service members from having their military income taxed by both their state of legal residence and the state where they are stationed. (However, if a military member has non-military income, the state in which he or she lives and works may tax that income, even if the military member is a legal resident of a different state).

MSRRA Protections for Dependent Spouses: Pursuant to the Military Spouse Residency Relief Act (MSRRA), military spouses may also maintain their established domicile or residence for tax purposes, but the domicile or residence must be the same as the service member spouse. However, the applicability of and eligibility under the MSRRA is very fact-specific, and many states have differing guidance on application of the MSRRA.

For further information or questions about residency for tax purposes, please contact your local Legal Service Office.

Credit Card Payment Options: Many states have made it easier for individuals to pay their taxes via credit card. Go to Official Payments or call 1-800-2PAY-TAX. They will accept AMEX, Discover/Novus, Master Card or Visa. You can do a Zip Code search to determine which states allow payments to be made online.

Note: Internet links are provided in this guide for your convenience. For links to Adobe Acrobat.pdf files online, after clicking on the link through this guide, you may also need to highlight the link in your web browser and double click for the document to appear.

EVERY EFFORT HAS BEEN MADE TO ENSURE THAT THE INFORMATION IN THIS GUIDE IS ACCURATE, HOWEVER, THE USER SHOULD CONFIRM ANY QUESTIONABLE INFORMATION WITH THE STATE WEBSITE!

Return to Table of Contents

States Participating in the Federal/State e-File Program

Alabama Arizona Arkansas Colorado Connecticut Delaware District of Columbia Georgia Hawaii Idaho Illinois Indiana Iowa Kansas

Kentucky Louisiana Maine Maryland Michigan Minnesota Mississippi Missouri Montana Nebraska New Hampshire New Jersey New Mexico New York

North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina Tennessee Utah Vermont Virginia West Virginia Wisconsin

State Electronic Filing Record Retention Requirements

State Alabama

Record AL-8453

Retention Requirements 3 years

Alaska (No Income Tax) Arizona Arkansas

California Colorado Connecticut Delaware District of Columbia Florida (No Income Tax) Georgia Hawaii Idaho Illinois Indiana

Iowa

Kansas

Kentucky Louisiana Maine

Maryland Massachusetts Michigan Minnesota

Mississippi

AZ-8879 AR-8453

FTB-8453 DR-8453 CT-8453 DE-8453 DC-8453

GA-8453 No separate e-form is required. ID-8453 IL-8453 IT-8879

IA-8453

No separate e-form is required. It is included in the federal 8453. 8453-K LA -8453 No separate e-form is required.

EL 101 M-8453 MI-8453 No separate e-form is required.

MS-8453

4 years Retain indefinitely. Code 16 requires retention until Dec. 31st of the year the return was filed.

4 years 4 years 3 years 3 years 3 years

3 years

3 years 3 years 3 years from Dec. 31 of the year the return was filed No retention requirement; Code 16 requires retention until Dec. 31st of the year the return was filed. Retain information for 3 years.

4 years 3 years Retain supporting documentation for 3 years. 3 years 3 years 3 years EROs must retain all supporting documents for one year. 3 years

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