Community Property and Military Pay

Whether an item is subject to community property laws depends on the nature of the payment.

Married taxpayers who choose to file separately, when subject to community property rules, have to figure community income and separate income for state and federal income tax.

Active Pay

State community property laws apply to active military pay. Generally, the character of the pay as separate from community income is determined by the marital status and domicile of the Armed Forces member and spouse while the member is in active military service.

Retired or Retainer Pay

Retirement or retainer payments to a member of the Armed Forces may be subject to community property laws.

For more information, see Publication 555, Community Property.