DC tax on outside income of military stationed in DC

Forum|Forum|2 years ago
March 13, 2024
1 reply
12 views

My client has been stationed in DC for the full year of 2023 in the military. She is considered by the military to be a resident of Texas even though she was in DC all year. She did several part time jobs during the year for which she was given W-2s with DC withholding. I cannot decide whether she needs to file a D40 (resident) or a D40B (non-resident). I talked to the DC Revenmue Service and they said to file the D40B requesting all the withholdings back and then if DC rejects it, to file again on the D40! A military site said that she needs to pay DC tax on her part time income but spouses do not. Help!!!

Another Former AllStar

ProSeries Professional

This topic has been closed for replies.

rbynaker

Level 13

Bumping 'cause I don't know but I saw Susan around here recently. 🙂

sjrcpa

Level 15

Gee thanks Rick. 🙂

I've never had this particular situation, but my quick look says you file the D-40 and subtract the military wages.

The more I know the more I don’t know.

P

poolcleanerAuthor

Level 8

Crazy, but the customer help in DC says to use the D-40B and request all the withholding back. If that is rejected, then you file the D-40. There is no way to do any of the things they tell you to do because the forms do not have the necessary lines.. The worst is completing the Form D-40B and then ProSeries will not let you print anything!! Four hours of trying with client sitting with me and I finally went to the DC website, found the form, filled it in and printed with no issues! It cannot be efiled.What a nightmare it has been. Military sources say you have to pay the taxes on the extra income but if T/P has a spouse, it is very easy to excuse them from DC taxes so why not the actual person in the military?

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