Tax board announces new federal tax exemption for military families
A new federal law exempts some civilian spouses' income from state income tax. The newly signed Military Spouses Residency Relief Act exempts personal service income and wages earned by taxpayers who reside with their military spouses, according to a news release from the state Franchise Tax Board. The couple must have moved to California under military orders for the income to be exempt from California taxes. They must also share the same "domicile" or true home outside California and intend to return there. The new law applies to all of 2009, allowing refunds of any taxes withheld this year on the now exempt income. Information: www.taxes.ca.gov
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