What type of self-employment income qualifies for exemption from Virginia income tax under the Military Spouses Residency Relief Act?
Income you earn from self-employment is exempt from Virginia income tax if the primary source of income from your business is derived from your performance of a service, and you meet the conditions for exemption discussed under Who Qualifies for Relief. If your business employs others and/or utilizes significant capital (equipment, vehicles, etc.), then the income you derive from the business will not be exempt from Virginia income tax. For additional information, see Tax Bulletin 10-1.
