The information in this article is up to date through tax year 2024 (taxes filed 2025).
For military families, frequent relocations and differing state tax laws can lead to questions about your federal and state filing requirements. If this is the first time you’ve filed taxes for your military household, there are some important things to consider.
In this article, we will address the most common questions regarding taxes for military spouses. We will explain how to determine if you are required to file taxes, where to file your state taxes based on your income, location, and state of legal residency, as well as potential credits and deductions you may qualify for.
Do military members and their spouses have to pay taxes?
Yes. When you file your taxes jointly, your income and your spouse’s military earnings are combined to determine your total taxable income.
A service member’s salary is categorized by its allocation. Some of it is tax-free, but some of it is taxable. Generally, their base pay is taxable unless they serve in a declared tax-free combat zone.
For military spouses, it’s important to understand you may also be impacted by these filing requirements, especially if you receive certain allowances or special pay due to your spouse’s military service.
In addition to base pay, special pay that may also be subject to tax includes:
- Special Pay — special duty, hardship duty, and imminent danger
- Bonus Pay — reenlistment, career status change, and overseas extension
- Incentive Pay — flight and hazardous duty
Military payments that are not taxed include:
- BAH (Basic Housing Allowance)
- BAS (Basic Subsistence Allowance)
- OHA (Overseas Housing Allowance)
- Certain disability payments
What filing status should a military spouse choose?
Because you are married, you can file together or separately. If you are filing one return for both of you, you’ll find the tax information you need – like your spouse’s W-2 – on MyPay, DFAS’s official online pay management system.
When you file jointly, the return must be signed by both spouses. However, if yours can’t sign due to a deployment, for example, you can use a power of attorney to file while they are away.
There are some situations where filing separately is beneficial, but it could also make you ineligible for certain tax breaks, like the Earned Income Tax Credit (discussed below).
The standard deduction changes yearly due to tax law changes and inflation. The standard deduction for tax year 2024 (tax returns filed in 2025) is as follows:
| Filing status | Standard deduction amount |
| Single or Married Filing Separately | $14,600 |
| Married Filing Jointly | $29,200 |
| Head of Household | $21,900 |
Can we claim the Earned Income Tax Credit if my spouse is in the military?
Yes, military families may be eligible to claim the Earned Income Tax Credit. The EITC is a tax benefit for people earning low to moderate income.
To qualify for the credit in 2024, your total adjusted gross income must be less than the following amounts:
| Number of children or relatives claimed | Filing as Single, Head of Household, Widowed | Married Filing Jointly |
| Zero | $18,591 | $25,511 |
| One | $49,084 | $56,004 |
| Two | $55,768 | $62,688 |
| Three or more | $59,899 | $66,819 |
If your spouse receives combat pay, it is usually exempt from tax. But for the purposes of the EITC, you could choose to include it in your taxable income instead. In some cases, this could increase the amount you receive for your credit.
Note: You can find the maximum AGI amounts for previous tax years at the IRS website.
Are moving expenses deductible for the military?
Yes. If your military spouse is on active duty and receives orders for a permanent change of station (PCS), any moving expenses that are not reimbursed or paid for by the government are deductible from your federal income taxes.
A tax law signed in 2018 eliminated this deduction for civilian taxpayers through 2025. But the provision remains intact for the military.
Note: Your spouse’s uniform is most likely not deductible. Also, your spouse cannot deduct the mileage they drive from home to their daily job.
What state should I file in if I’m a military spouse or in the military?
When it comes to filing taxes, the general rule is that you should file in the state where you earn income. However, there are exceptions to this rule, particularly for members of the military and their spouses.
State filing considerations for military members:
The IRS provides allowances for military personnel to maintain your home of record as your legal residence for tax purposes, regardless of where you are stationed. This means you may not owe state taxes in the state where you are currently stationed but might owe in your home state. The Military Spouses Residency Relief Act (MSRRA) gives military spouses the same allowance.
If you are earning income in a state different from your home of record, it is important to understand the state and local tax laws in both locations. Each state has its own tax rules and exemptions, which can significantly impact your filing requirements. You should be able to find information about whether you need to file, plus tax forms, rates, and any credits or deductions that are specific to that state. Many states even have specific Q&A sections for military service members filing income taxes
State filing considerations for military spouses:
Military spouses have a couple of options when it comes to state taxes, depending on where they reside and their home of record. As a military spouse, you can typically file in your home state or the state where your service member is stationed. You are no longer required to have lived in the service member’s state to claim that state as your resident state. You can choose the state that provides the most favorable tax benefits.
When you file with TaxSlayer, we’ll guide you through each step and generate the necessary tax forms based on your responses. After you indicate your residency status, you can specify that you are filing as a military spouse. We will assist you in adding both resident and non-resident returns as needed. Be sure to gather important documents such as W-2 forms and any state-specific tax paperwork.
What is a state of legal residence?
Also known as your “home of record,” your state of legal residence (SLR) is where your spouse will report and pay income taxes. It is typically where your spouse lived when they joined the service. Because you tend to move from duty station to duty station, it’s important to know your spouse’s SLR for filing purposes.
Should I file federal and state taxes in the same state as my service member spouse?
For your federal income taxes, you should file your federal tax return according to your duty station. The Military Spouse Residency Relief Act (MSRRA) allows you to claim your spouse’s state of legal residence as your own for tax purposes, even if you did not live in that state
If you have never lived in their resident state, you can choose to file a separate return in the state where you are living earning income.
Say you live in Missouri, but you can claim Georgia as your home of record. In this case, you would file and pay taxes on your income to the state of Georgia. According to Missouri’s tax laws, you would also need to file a Missouri state tax return, but your income would not be taxed by Missouri. You would specify that you are a military non-resident on your Missouri state return.
Some states provide special considerations for military families that could influence your decision to file in one state or another. It’s a good idea to calculate both scenarios to determine which one offers more tax advantages.
Where should I file state taxes if I earned income in two different states?
You will most likely need to file a state tax return for both states where you earned income. Remember, if you had money withheld from your paychecks and you are expecting a tax refund from the state, you will need to file a return to get your refund.
Do we have to file state taxes if my spouse works a non-military job in our current state?
Your spouse already reports military pay to their state of legal residence. But if they earn income from a civilian or non-military job, they will need to report those wages as a non-resident in the state where you are currently living. In this case, they may get a tax credit from their state of residence for the taxes paid to another state as a non-resident.
If I work remotely, do I pay state taxes where I live or where the company is based?
Typically, when you work remotely and your employer is located in a different state, you’ll be expected to file and pay as a nonresident for the state where your company is based. You’ll also file state taxes in your state of domicile or the state where you are currently living (depending on whether you qualify for MSRRA).
Note: If you work as an independent consultant, you should only pay taxes in your resident state – not where the parent company is located.
