Tuesday, January 17, 2012

Military Spouses Who Work in SC

I'm posting about this because I think it is the biggest error I see on tax returns filed by the military in South Carolina.  SC is very generous to the spouses of military members who are residents of other states.  This is not a Military Spouses Residency Relief Act issue (that's for another post) but an issue when the spouse is required, or chooses, to be a SC resident while the military member is not.

SC allows you to exclude the military members military pay from the calculation of the percentage of deductions allowed to the wife.  The effect of this is to allow the spouse almost all of the combined deductions off of only the SC income.  This, in effect, generally results in most military spouses paying almost none, or very little taxes to SC.

The problem is that most software, and many preparers do not take this into account.  Every military spouse who works in SC should check their tax return.  It should have a SCNR form on it, and, line 1 Column A and B should have the same amount in both (unless the spouse has income from another state on her own due to a move or something.)  If this is not the case, the SC should be amended to correct this.

Shameless self promotion:  If you are not sure if your SC is correct, I will check it for free and, if it's wrong, give you a quote on how much I would charge to fix it.  If you want me to fix it, I will.  If not, at least you'll know if it's right or wrong.

E-mail me at: taxadvisor@email.com or call (843) 553-0274 for an appointment (ask for Kirk)

We can check and fix these without an office visit via fax or e-mail.

If you like the blog, buy my book: Everyday Taxes only $5.99 for Kindle! 

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