Question
Military Pay, California, Montana
My military clients are domiciled in California, but stationed in Montana. They live together in Montana and the spouse has a job in Montana. The military husband has a W-2 designated with the state of California. The military spouse has a W-2 with a designated state of Montana.
If I understand the tax laws properly, both husband and wife would be non-residents of California and as such none of their income would not be taxed to California.
I have researched Montana income for the military, and it looks as if the military pay would be exempt from Montana income tax and only the income earned by the spouse would be taxable to Montana as non-residence income.
Is there any additional solutions and/or information that I might be overlooking?
