As a military spouse, am I taxed by North Carolina for income earned or services performed in North Carolina?

The Servicemembers Civil Relief Act prohibits North Carolina from taxing the income earned for services performed in North Carolina by a spouse of a servicemember stationed in North Carolina if:

1. the servicemember is present in North Carolina solely in compliance with military orders;
2. the spouse is in North Carolina solely to be with the servicemember;
3. the spouse is domiciled in the same state as the servicemember.

The Veterans Benefits and Transition Act of 2018 amended the Servicemembers Civil Relief Act to allow the spouse of a servicemember to elect to use the same state of residence as the servicemember for state tax purposes. Beginning with taxable year 2018, this election can be made regardless of when or where the taxpayers were married.

The income earned for services performed in North Carolina by a spouse of a servicemember who made the residency election under the Veterans Benefits and Transition Act of 2018 is not subject to North Carolina income tax if:

1. the servicemember is present in North Carolina serving in compliance with military orders;
2. the servicemember's spouse is in North Carolina solely to be with the servicemember;
3. the active duty servicemember maintains legal residence in a state other than North Carolina and the servicemember's spouse elects that same state as her legal state of residence.