We are filing MFJ with std. deduction but live in two different states. We have always filed MFS with std. deductions for each state return and included a copy of a mock Federal MFS return with just the income and deductions of each person. This year, the better state tax outcome for the lower income earner is to itemize deductions. Does NC recognize a MFJ Federal std. deduction return and a MFS itemized deduction state return even if the non-resident spouse uses the std. deduction on his state return? Filing MFS Federal returns is not an option since the IRMAA consequence for the higher income earner is more than difference in taxes.
