I have an active duty military client whose spouse had state tax withholding in AL and GA on wages that should be exempt from state tax. I selected active duty military on the spouse's W-2 to exempt the wages but that doesn't feel right. I can't find a MSRRA checkbox anywhere on the AL or GA returns. Is there a better way of getting the spouse's taxes refunded?

Kelsy F
Level 1

Hello, I realize this is an older post but in general you can adjust how wages flow to state forms through by expanding the wages box. Start by entering the W-2 Wages screen. Click in the Wages box on line 1, then click the "+" button to enter the expanded view. From there you can select the state the wages should have been withheld from, and selecting either "N" or "S" in the column to the right. It is often helpful to use the  "Preview Forms" feature to ensure the correct amounts are flowing to the expected states. I hope this helps anyone starting out with individual military multi-state returns. 

View solution in original post