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New York State Department of Taxation and Finance

TSB-M-10(1)I

Income Tax

Office of Tax Policy Analysis

TSB-M-10(1)MCTMT

Taxpayer Guidance Division

MCTMT

January 11, 2010

Military Spouses Residency Relief Act

The federal Military Spouses Residency Relief Act (Public Law 111-97) (hereinafter, the

Act), which amends the Servicemember Civil Relief Act (SCRA), was signed into law on

November 11, 2009. The Act provides certain tax relief for spouses of servicemembers (military

spouses) who are present in a state solely to be with the servicemember when the servicemember

is in that state in compliance with his or her military orders. The application of this Act to the

New York State, New York City, and Yonkers personal income taxes and the Metropolitan

Commuter Transportation Mobility tax is explained below. The Act applies to tax years 2009

and after.

New York State, New York City, and Yonkers personal income taxes

Rules relating to the domicile or residence of a military spouse

New York Tax Law provides that an individual who is not domiciled in New York State

can be treated as a resident for income tax purposes if the individual maintains a permanent place

of abode in New York and spends more than 183 days in the state during the tax year.

However, the Act provides that a military spouse cannot lose or acquire residence or

domicile in a state when the military spouse is located in New York State solely to be with the

servicemember and the servicemember is located in New York State in compliance with his or

her military orders. The SCRA had previously protected only the servicemember from losing or

acquiring domicile or residence when the servicemember was in the state solely to comply with

his or her military orders.

Accordingly, a military spouse will not be treated as a resident of New York State for tax

purposes (that is, the spouse will be treated as a nonresident) if the following conditions are met:

• the military spouse is located in New York State solely to be with the servicemember

and the servicemember is located in New York State in compliance with his or her

military orders, and

• the servicemember and his or her spouse were residents or domiciliaries in a state other

than New York State before being located in New York.

These rules apply regardless of how much time the military spouse spends in New York

State or whether or not a permanent place of abode is maintained in New York State. However,

the exclusion from being considered a resident for tax purposes does not apply to a military

spouse who was domiciled in New York State at the time he or she marries the servicemember.

Transfers and relocations. If a military spouse has met the conditions for relief under

these rules, and the servicemember is subsequently assigned outside the United States or to

another state, and the military spouse remains in New York State, the rules will continue to apply

W A Harriman Campus, Albany NY 12227

Instructions For Form Tsb-M-10(1)i - Income Tax - Office Of Tax Policy Analysis Taxpayer Guidance Division