If you are a legal resident of Maryland and serving in the military, you must file a resident Maryland tax return, regardless of where you are stationed. You must also report all of your taxable income from all sources, including military pay.
The wages earned by a spouse of a nonresident U.S. servicemember may be exempt from Maryland income tax under the Military Spouses Residency Relief Act, when the spouse of the servicemember is not a legal resident of Maryland. The income tax withholding exemption may be claimed by filing a revised Form MW507 with their employer. Beginning 2011, you must also complete and attach Form MW507M. For more information, see Employer Withholding Tax Alert- Important Information for Spouses of U.S. Military Servicemembers and Administrative Release 1: Military Personnel and Civilian Spouses - Both Residents and Nonresidents of Maryland
Military service may entitle you to special tax breaks for overseas pay and retirement income. The following links offer more information about helpful tax benefits and other unique filing situations that affect military families in Maryland.
Forms and Worksheets for Military Personnel
- Form MW507
- Form MW507M
- Military Overseas Income Worksheet
- Military Worksheet A: compute the adjustment to the standard deduction or itemized deductions as well as exemptions for local tax.
- Military Worksheet B: compute the local tax for a civilian spouse taxpayer.