Paying state taxes after getting out of military?

Question

I hope i can explain this right for everyone to understand. My fiance just got out of the military in August and was stationed in NC, which his W2 comes from Texas, and according to the tax office he owes over $700 in state taxes because the Military doesnst take out state taxes for some reason. The previous year he was also stationed in NC he didnt pay taxes either and didnt owe any to the state. He has had another job since he has been out of the military and has been paying in NC taxes so that isnt what hurt him. So does anyone have any reasons why he is having to pay state taxes for the time he spent in the military?

Answer 1

If he was domiciled in TX while stationed in NC, he does NOT pay taxes on his military income to NC. (If he had an off-duty job in NC, he would pay NC tax on that, however.)

Once he separates from the military, his income AFTER SEPARATION will be become subject to NC taxes if he remains in NC.

He should file a part-year return in NC, only claiming the income earned AFTER his release from active duty.

Note: TX has no income tax. That's why no TX taxes were withheld. If he's really from TX, he'd know that.

Answer 2

The military does take out for state taxes but if TX has a tax exemption for military then nothing would be taken out. For example I was in the Marines from washington state which doesnt tax military living outside of washington. Did the person filing his taxes know that he was considered a resident of TX even though he was living in NC...check if TX gives a tax break. You should be able to find it online by searching for military state benefits

Answer 3

definite, you stay there. You earnings on the flaws the state/localities provide. you received't pressure a automobile yet I wager you experience in a unmarried, or take the bus. highway nevertheless should be outfitted/maintained. The state i'm retired in does no longer fee state earnings tax yet I wish it did. somewhat, I pay 9.seventy 5 % revenues tax on damn close to each and every thing. nutrition is taxed at 8% and that i stay 2 hours from the nearest commissary. you do not opt to draw close what I pay for in resources tax on a house that could no longer nicely worth what we paid for it. Its in elementary words a count of time till they tax farts.

Answer 4

The military lets the service member claim their state of residence. I am guessing that you spouse is a Texas resident and neglected to have the state taxes taken out of his pay. If no state tax was taken out of his pay and he is a Texas resident, then your spouse made an error and the state of Texas is due the money. Check his LES and see what he is claiming as his state of residence. Also check with Texas, some states give breaks to service members on active duty.