Since the 2009 change in tax law under the Military Spouses Residency Relief Act that permits military spouses to be able to determine their residence for taxation while on assignment with the military spouse more and more states have weighed in. The latest is Ohio.
This act basically states that a civilian spouse of an active duty military service member is not subject to income tax of the state in which the spouse is present if the service member and the spouse have the same state of residency and that state is in another state other than the one in which the service member is stationed.
Ohio's Department of Taxation is now making the IT-MIL-SP form available for spouses of active duty military. This form allows the spouse to exempt themselves from Ohio taxation for wages earned in Ohio if that is the duty station of the military spouse but not the actual resident state of the spouse.
Payroll professionals need to research this area carefully as many of the states are now using this type of form to allow the spouses to opt out of taxation on their payroll check.
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