Understanding the Military Spouses Residency Relief Act: Key Insights

Military spouses have to move around a lot to accompany the military member they married, and this constant movement requires a lot of effort. Fortunately, laws like the SCRA or Servicemembers Civil Relief Act and the MSRRA or Military Spouses Residency Relief Act exist to make the transitions easier. We’ll zero in on the MSRRA in this article.

What is the Military Spouses Residency Relief Act (MSRRA)?

Enacted in 2009, the MSRRA amended the SCRA by permitting a military spouse to retain their state of legal residence, provided they live with the service member they married.

This law makes it easier for military families to manage their taxes because they won’t have to pay state income taxes in various states when their husband or wife moves because of deployment orders.

How the MSRRA Impacted the SCRA

The MSRRA made it easier for both the service member and their spouses to pay taxes. As long as they reside in the same state, they get to retain their tax residency state and enjoy a simplified filing process. Service members often move because of military orders, and this amendment helps them through complicated tax laws.

Eligibility Criteria for MSRRA Benefits

Many military spouses qualify for MSRRA benefits but are unaware of this privilege. Here are the basic requirements you must fulfill to retain a state solely for tax implications:

• You might be married to a service member: You must present your marriage certificate and other supporting documents proving you’re married.
• The service member must be on active duty: The spouse in the Armed Forces should present deployment orders or proof that the service member is being deployed elsewhere.
• You should move across states with your spouse: You must have moved to the new state solely to live with your spouse, and you and the military member must also be living together.

Retaining Your Legal Residence

Whether you’re in the military or not, you must have a state of legal residence. In most cases, this is the state where you live. The SCRA permits active duty service members to choose their state of legal residence for their taxes, while the MSSRA allows their spouses to declare the same state of legal residence.

This benefit makes it easier for military families to handle their taxes. They won’t have to pay taxes in different states, and the process is simpler.

License to Work in Different States

The Veterans Auto and Education Improvement Act of 2022 has improved military spouses’ lives. This SCRA amendment permits military members and their spouses to transfer their professional licenses and certificates across states.

This amendment opens more job opportunities for military spouses to pursue. They can retain their line of work without worrying about their qualifications. However, they’re not allowed to transfer law degrees.

How to Maximize the MSRRA?

If you want to maximize the MSRRA, you should be ready to prove your spouse’s military status. Services like SCRACVS can make it easier for you to get military verification. You won’t have to stress out during tax season with our help.

Conclusion

The MSRRA is designed to make taxes easier for military spouses, but you need evidence that your spouse is on active duty for it to be legal. Click here to sign up at SCRAVS and verify the active duty status.

FAQS

Does SCRA apply to spouses?

Select benefits apply to military spouses. Likewise, they need to present military orders or prove their spouse is in the military for the benefits to be honored.

What are military spouses entitled to?

Spouses are granted access to military bases, free health care, insurance, and other benefits extended to their spouses. If they live together, they can enjoy a BAH housing allowance to make their rent more affordable.

What is the Military Spouse Residency Relief Act in NY?

The MSRRA is a federal law, so the same rules apply in New York City. Spouses, once based in NY, can retain their state of legal residence solely for their taxes.

How long do you have to be married to a military spouse to get benefits?

If you’re currently married to a service member, you can access military benefits immediately. However, you must satisfy the 10/10/10 or 20/20/20 rule to retain benefits if you divorce them.

Can military spouses choose any state as their legal residence under MSRRA?

No. The condition of this law is that they must live with the spouse who was deployed in a different state and have lived in the state of legal residence. They can’t choose the state they want for tax purposes.

What happens to MSRRA benefits if a military couple divorces?

You will only retain military benefits if you are wed to a service member. You give up MSRRA benefits if you get divorced.