Who is a resident of Virginia under the Federal Servicemember Civil Relief Act?

For Taxable Year 2023 and after, if you are a servicemember serving in compliance with military orders or the spouse of such servicemember, the federal Servicemember Civil Relief Act (SCRA), as amended by the Veterans Auto and Education Improvement Act, allows you to elect to use the following locations for purposes of taxation:

• The residence or domicile of the member, OR
• The residence or domicile of the spouse, OR
• The permanent duty station of the member

Servicemembers and spouses are not required to elect the same residence for state tax purposes. No form is required to be filed with the Department of Taxation to make this election; however, you should maintain any records needed to show that the elected state met the requirements of SCRA.

If you elect Virginia, prepare your return as a Full-Year Resident of Virginia.

If you elect a state other than Virginia:
If you had Virginia tax withheld on SCRA-protected income, you may file Form 763-S  to request a refund. Going forward, you may need to indicate on Form VA-4  that such income is exempt from withholding by checking the line on the Form that references SCRA.

If the servicemember begins or ceases to serve in compliance with military orders during the taxable year you may be required to file as a Part-Year Resident of Virginia.

If you have income from Virginia sources other than SCRA-protected income, you must file as a Nonresident to report and pay Virginia income tax on such income.