Yes, you are correct, there are many advantages to filing married filing jointly. TurboTax will help you capture these details in the state interview.
When starting the state interview, here are the steps to follow:
- Identify yourselves as non-resident and resident with this protocol:
- Identify the spouse identified as Taxpayer first--so, if you are listed first in the return, you are the taxpayer.
- Whoever is the taxpayer: Enter the nonresident state first
- When asked about state residency, select Nonresident for taxpayer and Resident entire year for spouse.
- Complete the interview for this state.
- Be sure to report only the resident income as belonging to this state.
- Enter the state the taxpayer lived in as of December 31, 2020.
- When asked about state residency, select Resident entire year for taxpayer and Nonresident for spouse.
- Complete the interview for the second state.
- Be sure to report only the resident income as belonging to this state.
- For the state returns, remember that there is a renter's credit and a commuter's credit for Massachusetts residents.
Regarding your education credits, you may qualify for the American Opportunity Tax Credit. If not, the Lifetime Learning Credit will allow for up to a $2,000 credit for qualified students.
For more details, see: Is it better for a married couple to file jointly or separately?
2020 Massachusetts Form Instructions Resources (See page 22 of Form 1 instructions for Commuter deduction.)
2020 Michigan Form MI-1040 and Schedule NR Instructions Resources
