what state do i clam on my taxes...active duty military?

i am active duty military living off base in N.C. with my wife and child. (renting house)

my W-2 says i paid state tax to Iowa. i have an Iowa driver's license, automobile registration, and voter registration card, banking cards.

my wife has north Caroline license, and is registered to vote in N.C. and is a part time student. and unemployed.

what state do we clam? and do i still have to pay state taxes to Iowa even if i dont physically live in Iowa?

4 Answers

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  • 8 years ago
    Favorite Answer

    You will file an income tax return with the state of Iowa. And Iowa does tax those who are serving on active duty. For more information: http://www.iowa.gov/tax/1040EI/GenInfo/10Military....

    Also, it does appear that beginning in 2011, all active duty pay was exempt from Iowa state taxes. So, if you had state withholding, you are going to want to file to get back that money.

    Source(s): AF spouse - 24 years VITA
  • NWIP
    Lv 7
    8 years ago

    Iowa is your Home of Record that is where you joined the military, so that is why you pay taxes for that state and why you would file Income Tax for that state. The only way it would change is if you change your Home of Residence and then you would pay taxes for that state. You are just residing in North Carolina so you do not file taxes for that state. Now if your wife worked she would have to file for that state.

  • 8 years ago

    You will have to file both in NC and in IA. As already mentioned, your income will be tax exempt in IA but your wife's pay will not be. However, IA will give her credit for taxes paid to NC.

    What it amounts to is that you will file a joint NC tax form but only your wife's income will be taxed. Then you will send a copy of that tax form with your IA tax form where you will receive credit for taxes paid to NC.

    Source(s): 27 years active Army service including time in NC. Also my wife is tell me what to type. She worked as a tax preparer in NC so she understand this very well! Make sure you talk to one of the tax guys at JAG!
  • Barry
    Lv 6
    8 years ago

    You claim your home of record (the State you enlisted in) And no, you do not have to pay State income taxes.

    Source(s): 2 years USA and 23 years USN
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