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FOR IMMEDIATE RELEASE
Christine Feldmann 410-260-6346 (office), 443-336-0215 (cell)

Military Spouses Spouses May Be Exempt from Maryland Income Tax

Comptroller Peter Franchot recently announced important information for military spouses in response to recently passed federal legislation. Under the Military Spouses Residency Relief Act, signed into law on Veteran’s Day by President Obama, the spouse of a service member may be exempt from Maryland income tax in certain circumstances.

Military spouses may be exempt from state income tax on income from services performed in Maryland if the service member is present in Maryland under military orders, the spouse is in Maryland solely to be with his/her spouse and the spouse maintains domicile in another state. The military spouses act is effective for taxable year 2009 and thereafter.

“Military spouses make tremendous sacrifices for our country,” said Comptroller Franchot. “I’m happy to support the President’s action to offer this benefit to the strong men and women who support their service member spouses. My office will make the process of claiming this exemption and subsequent refunds as simple as possible.”

A spouse whose wages are exempt from Maryland income tax under the new act may claim an exemption from Maryland withholding tax. Effected spouses wishing to claim this exemption should file a revised Form MW507 with their employer. The form can be found at http://forms.marylandtaxes.com/09_draft_forms/MW507.pdf

Additionally, any refunds for tax year 2009 can be claimed on a properly filed nonresident Form 505 with W-2s attached. The form will be available on the Comptroller’s Web site in the coming weeks.

Currently, Maryland and a number of other states are collaborating to establish common guidelines for implementing the Military Spouses Residency Relief Act. Continue to visit the Comptroller’s Web site at www.marylandtaxes.com for updated information.