Nonresident Military Spouse Withholding Exemption

(Military Spouses Residency Relief Act, Public Law 111-97)

Federal law allows a military servicemember's spouse to keep a tax domicile throughout the marriage, even if the spouse moves into another state, as long as the spouse moves into the other state to be with a servicemember who is in the state because of military orders. The stated purpose of the law is to eliminate the burden of filing multiple part-year and nonresident income tax returns. The law allows income from self-employment and wages for services performed in Wisconsin (but not other income, such as income from the rental or sale of property located in Wisconsin or certain gambling winnings) to be sourced to a state other than the state in which the income from self-employment and wages are earned.


Applicable Laws and Rules

This document provides statements or interpretations of the following laws and regulations in effect as of October 22, 2019: Section 71.01, Wis. Stats., and 50a U.S. Code § 571.

Laws enacted and in effect after October 22, 2019, new administrative rules, and court decisions may change the interpretations in this document. Guidance issued prior to October 22, 2019, that is contrary to the information in this document is superseded by this document, pursuant to sec. 73.16(2)(a), Wis. Stats.

FOR QUESTIONS OR COMMENTS CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Individual Income Tax Assistance
PO Box 8949
Madison, WI 53708-8949
Phone: (608) 266-2486
Fax: (608) 267-1030
Email additional questions to DORIncome@wisconsin.gov

Guidance Document Number: 100173

October 22, 2019