Am I required to pay taxes on income earned as a military spouse stationed in Michigan?
Under the Federal Military Spouses Residency Relief Act, the spouse of an individual in the military is a nonresident of a state and consequently
not subject to that state's taxation if:
• The service member is present in that state due to military orders
• The spouse is in that state solely to accompany the service member
• The spouse maintains a domicile in another state
If a nonresident military spouse earned wages in Michigan, they are required to file a Michigan return to receive a refund of any Michigan withholding tax. Required forms include (not limited to): MI-1040, Schedule 1, Schedule NR, and Schedule W.
Therefore, a military spouse who is a Michigan resident and plans to return to Michigan as his/her permanent home should include income earned in the other state on his/her Michigan individual income tax return. A Michigan military spouse may not claim a credit for the income taxes paid to another state. The military spouse must file a non-resident return with the other state to obtain a refund of taxes paid to that state.