In 2007 DH and I still had our residence in Colorado and I was employed there. DH is paid from his home of record, which is Colorado. We moved to Oklahoma in March of '07 so I have paid taxes here. When I filled out our taxes for 2007 Oklahoma wanted to tax us on some of DH's income even though he's still being taxed in Colorado. We owe OK, unless I put in a credit for taxes paid to another state. I am nervous about the fact that if we do owe (which I don't feel we do or should) that we will be penalized and have interest on our amount owed.

How do any/all of you handle state taxes when you file if you file for more than one state? Should we only be paying taxes on MY income here in OK or do we really have to pay taxes to CO and OK for the next 5 years while DH is Active Duty?

Pay the tax for any member of your Family who worked one State, while residing in another.

I did our taxes on H&R Block's Tax Cut through MilitaryOneSource and even though I specified the only amount of income earned in OK, the state return pulled the combination of mine plus DH's income. Should I just fill out the OK return by hand or include the "credit for taxes paid to another state"? I don't know how or why the OK return pulled the amount of "taxable income" that it did.

I figured we shouldn't be getting taxed in CO AND OK for DH's income. This is the first year we've done our taxes in another state and DH being active duty. I figured you more experienced members would be able to help out!

What I've always done was file a nonresident return with a joint filing status. Your active duty military spouse is not a resident of OK, so they can't tax his active duty military pay. As a nonresident, they should generally only tax you on the money that you earned in OK, but there is some variance by state. The hardest part is figuring out how to get the software to understand your situation.

Thank you so much Taxman! That's what I was thinking was the case. And in the software I "told" it that I was the only one that should be paying taxes to OK and it still pulled some other amount as our taxable income. I will get it figured out from here. You made my day because now we will get a refund from OK instead of paying them.

quote:

Originally posted by LadyBird1124:
In 2007 DH and I still had our residence in Colorado and I was employed there. DH is paid from his home of record, which is Colorado. We moved to Oklahoma in March of '07 so I have paid taxes here. When I filled out our taxes for 2007 Oklahoma wanted to tax us on some of DH's income even though he's still being taxed in Colorado. We owe OK, unless I put in a credit for taxes paid to another state. I am nervous about the fact that if we do owe (which I don't feel we do or should) that we will be penalized and have interest on our amount owed.

How do any/all of you handle state taxes when you file if you file for more than one state? Should we only be paying taxes on MY income here in OK or do we really have to pay taxes to CO and OK for the next 5 years while DH is Active Duty?

Did you mean 2006?

No, I meant 2007. 2006 taxes have been filed for over a year now.