The Pennsylvania Board of Finance and Revenue (BFR) granted the taxpayers’ petition regarding their 2024 personal income tax refund. The dispute centered around whether the wife’s income was subject to Pennsylvania tax due to the Military Spouse’s Residency Relief Act (MSRRA) while her husband was on active military duty stationed in Pennsylvania. The BFR found that under the MSRRA, the wife’s income earned while her husband was on active duty was not subject to Pennsylvania tax since they maintained their Texas residency. However, the BFR ruled that the wife’s income earned after her husband’s retirement from active duty was subject …
