Nonresident military spouses, qualified spouses entitled to state tax refund.

• Position: FTBNEWS

The FTB announced that a new federal law exempts some civilian spouses' income from state income tax. The Military Spouses Residency Relief Act exempts personal service income and wages earned by taxpayers who reside with their military spouses.

The couple must have relocated 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 where they intend to return and locate permanently.

The new law...