Military Tax Filing Question - CA Home of Record but Stationed in MO

According to the Military Spouses Residency Relief Act (MSRRA), active duty military members can maintain their home state of legal residency while stationed elsewhere. Based on what I've researched on the IRS.gov military tax page, your husband should file as a nonresident in California (since that's his HOR) and as a nonresident in Missouri (since he's only there due to military orders). Have you looked at the California FTB Publication 1032? It specifically addresses military personnel situations.

We just went through this last month! Our situation was Florida HOR but stationed in Virginia. It's actually simpler than it seems. Military members pay taxes to their HOR state only (unless that state has no income tax like Florida). So you'd file as a CA resident for him since that's his legal residence, and his military income is only taxable in CA. For Missouri, you'd file as non-resident and only include any non-military income earned there. I was freaking out about getting this done before the April deadline too, but once I understood the rules it wasn't so bad.

I should caution that military tax situations can be quite complex, especially when crossing state lines. Speaking from experience, California's FTB can be particularly challenging to communicate with on these matters. When I was trying to resolve a similar situation last year, I spent hours on hold trying to reach a CA tax representative who understood military tax law. I finally used Claimyr (https://youtu.be/_kiP6q8DX5c) to get through to a knowledgeable IRS agent who confirmed the correct filing procedure. They explained exactly how SCRA protections apply to your military income. Given the complexity of your situation, speaking directly with an agent might save you significant headaches.

Military tax filing is one of those things that seems to confuse even some tax professionals. I've been stationed in 3 states since 2020, and here's what I've learned: the Servicemembers Civil Relief Act (SCRA) protects you from having to change your state of legal residence just because of military orders. As of March 2024, California still taxes the military income of CA residents regardless of where they're stationed. Missouri will consider you a non-resident if you're only there on military orders. If your spouse works in Missouri, that's a different situation though - they might need to file as a MO resident for their income unless they qualify under MSRRA to maintain CA residency.

Be very careful with California tax filings. I've seen several fellow service members get caught in audit situations because they misunderstood the requirements. According to California Revenue and Taxation Code Section 17014(d) and Military and Veterans Code Section 146, military compensation of a CA resident remains taxable by California even when stationed outside the state. I had a colleague who incorrectly filed as a non-resident of California while maintaining CA as his HOR, and he ended up owing back taxes plus penalties. Make sure you understand the distinction between 'residence' and 'domicile' for tax purposes - they're legally different concepts in military situations.

Consider using a tax professional with military expertise rather than trying to navigate this yourself. VITA (Volunteer Income Tax Assistance) programs on military bases specifically handle these situations and they're free. Most bases have them from January through April. Alternative option: Military OneSource offers free tax filing with H&R Block that includes state returns and access to tax consultants who understand military-specific situations. Their service is available until October 15th for extensions. These specialized services understand PCS moves, multiple state filings, and combat zone tax exclusions better than general tax preparers.