Military Pay
Resident - If the taxpayer is a resident of West Virginia and physically present for more than 30 days they are subject to West Virginia income tax on all income regardless of the source. This includes active duty military pay.
West Virginia offers a subtraction for resident active duty taxpayers who are stationed outside of West Virginia during the tax year. If the service member was not physically present in West Virginia for more than 30 days, the military income can be subtracted from income on the West Virginia resident return.
To subtract this income in TaxSlayer Pro, from the West Virginia Resident Tax Return menu select:
- Subtractions to Income
- Active Duty Military Pay
- Taxpayer (or Spouse) Active Duty Military Pay - Enter the applicable wages as a positive number. Please note military orders will need to be attached if taking this subtraction.
If the taxpayer is a resident of West Virginia, was present for 30 days or more, and has separated from active duty service, they are able to subtract their active duty military pay. They must include a copy of their military orders with the return. To subtract this income in TaxSlayer Pro, from the West Virginia Resident Tax Return menu select:
- Subtractions to Income
- Active Military Separation
- Taxpayer (or Spouse) Active Duty Military Pay - Enter the applicable wages as a positive number. Please note military orders and DD Form 214, Certificate of Release or Discharge from Active Duty will need to be attached if taking this subtraction.
Nonresident - If the taxpayer is a nonresident of West Virginia stationed in West Virginia whose only source of income is active duty military pay, they are not required to file a West Virginia return.
One spouse is a resident of West Virginia and the other is not - A servicemember’s spouse may elect, for income tax purposes, to use the same state of residence as the servicemember. If a servicemember is not a West Virginia resident but is a resident of another state, his or her spouse can elect to also be a resident of the other state.
If the taxpayers do not elect to use the same resident state, West Virginia requires taxpayers who are not both residents of West Virginia to file a nonresident West Virginia return.
Spouse Income - Military Spouses Residency Relief Act (MSRRA)
The MSRRA allows military spouses who reside with their service member spouse stationed in a nonresident state on military orders to keep their resident state for tax purposes. This means if the spouse has income from the nonresident state, they are not required to pay taxes to the nonresident state but report this income on their resident state return.
In order to be eligible for the income exemption under the MSRRA in West Virginia, the following conditions must be met by the military spouse/employee:
- The service member is present in West Virginia in compliance with military orders.
- The spouse is in West Virginia solely to be with the service member.
- The spouse maintains domicile in another state.
If the military spouse meets the eligibility requirements, they can avoid West Virginia state tax from being withheld from their pay by providing their employer with Form IT-104 Employee's Withholding Exemption Certificate.
To claim a refund of taxes withheld from the West Virginia income in error, from the nonresident West Virginia Tax return menu select:
- Schedule A For Part-Year/Nonresident
- Wages, Salaries, Tips, etc.
- Adjustments to State Wages (+/-) - Enter the allowable wages as a negative number.
- Special Nonresident Income
- Personal Information
- Live in Reciprocal State - Select Active Military and attach copy of Military Orders.
Note: This is an article on reporting military pay and military spouse pay in the TaxSlayer Pro program. It is not intended as tax advice.
Additional Information: