SPOUSE RESIDENCY
The Military Spouse Residency Relief Act establish-
es that military spouses will not lose or gain a domicile (for tax or voting purposes) because of a move in which they accompany a servicemember on government perma- nent change-of-station orders. “This can be a great benefit to military spouses and
their families going forward,” notes Dunlap. “No. 1, it al- lows spouses to establish a home base so that they have a sense of belonging, and No. 2, some will have the opportu- nity to save on taxes on their earnings.” In addition, spous- es no longer will be discouraged from holding personal property, such as cars, in their own name. (Many families have kept property in the military sponsor’s name to avoid state personal property taxes, which are not charged against military members who are not residents.) This legislation is complex, however, and military families are urged to be cautious in how they proceed. “What the bill does not do is allow spouses to arbitrarily choose the state in which they want to be domiciled,” Dunlap says. “Each state will make determinations, and qualifiers may vary.” General guidelines that states may use to determine residency include: n Has the military spouse ever lived in the state? n Does he or she have an intent to return to the state? n Has he or she voted in the state? n Does he or she have vehicles registered in the state? n Does he or she own property in the state?
5 8 MI L I T A R Y O F F I C E R MAY 2 0 1 0
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BEING THE SPOUSE OF AN ACTIVE DUTY SERVICE-
MEMBER presents many challenges. But some new and existing benefits might make it easier for military spouses to continue their education or put a little more money in their bank accounts. n “These programs offer the op- portunity to significantly benefit military families,” says Joy Dunlap, deputy director for Military Family Issues in MOAA’s Government Relations Department. “Military families should sit down and really look at their life plan and see what sort of decisions they must make to maxi- mize the benefits they are being offered.”
Chances that a spouse’s claim of domicile will be ap-
proved increase with each affirmative answer. When filing a claim of domicile outside their current
state of residency, it’s important that servicemembers and spouses understand most small businesses will not file withholdings in other states. “The spouses and ser- vicemembers would be responsible for that,” explains Dunlap. “It won’t be automatic unless a company is a large national company.” Sue Hoppin, an Air Force spouse, former MOAA staff
member, and author of A Family’s Guide to the Military for
Dummies (For Dummies, 2008), lives in Virginia but filed in 2009 to make Florida her state of domicile. She found that Facebook offered a wealth of information about the legislation (see link below); she also encourages military spouses to attend base presentations and other events. “[Spouses] need to understand what the law is and be able to articulate their specific situation,” Hoppin says. “I would also caution folks to understand the implication of choosing a new domicile state, as it might change their eligibility for other benefits they are receiving.” Dunlap advises military spouses with questions to consult their JAG or another attorney, their accountant, and their state department of taxation. The following re- source also might be helpful:
www.facebook.com/pages/military-spouses-residency-re lief-act/51457362877
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