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Instructions For Form Ow-9-Mse - Annual Withholding Tax Exemption Certification For Military Spouse - 2012 Page 2

Important Tax Information Regarding Spouses of United States Military Servicemembers

On November 11, 2009, the President signed into law the Military Spouses Residency Relief Act

(hereinafter, the “Act”) (S.475). The Act is effective for taxable year 2009 and thereafter. It does not

affect taxes imposed or paid for 2008 and earlier.

The Act amends the Servicemember Civil Relief Act (hereinafter, “SCRA”) to provide that a spouse shall

neither lose nor acquire domicile or residence in a state when the spouse is present in the state solely to be

with the servicemember in compliance with the servicemember’s military orders if the domicile is the

same for both the servicemember and spouse.

Income Tax

Under the Act, a nonresident spouse of a nonresident servicemember may be exempt from Oklahoma

income tax on income from services performed in Oklahoma if all of the following facts are true:

• the servicemember is present in Oklahoma in compliance with military orders;

• the spouse is in Oklahoma to be with the servicemember; and

• the spouse maintains the same domicile as the servicemember.

Any refunds for taxable year 2009 may be claimed on or after January 1, 2010 by filing a Form 511NR

‘Oklahoma Nonresident/Part-Year Income Tax Return’.

Withholding Tax

A spouse whose wages are exempt from Oklahoma income tax under the SCRA may claim an exemption

from Oklahoma withholding tax. Spouses wishing to claim this exemption from income tax may file a

Form OW-9MSE ‘Annual Withholding Tax Exemption Certification For Military Spouse’ with their

employer. Spouses claiming exemption from Oklahoma income tax should consider the impact on their

income tax (and estimated income tax) liability in their domicile state.

FAQs

(In these FAQs legal residence is used to mean domicile.)

1. Must the servicemember and the spouse have the same State of legal residence to qualify for the

protection afforded under the Act?

Response –

Yes, the spouse must maintain the same domicile as the nonresident servicemember.

2. What is considered Oklahoma Source Income and is therefore subject to tax in Oklahoma for a

nonresident servicemember and for the nonresident spouse who qualifies for the protection

provided for under the Act?

Response -

Instructions For Form Ow-9-Mse - Annual Withholding Tax Exemption Certification For Military Spouse - 2012 Page 2