As a service member I have chosen to have my Home Of Record to be Virginia. Spouse has worked a good job as a W2 employee in NC and has had thousands of dollars withheld from her salary. We understand that she can pay taxes in VA but that would require filing a NC return to get a refund which we have had a bad experience with in the past.
She has decided that it is in her best interest to file in NC which is how we came to "Married Filing Jointly" for federal and separately for state. But TurboTAX doesn't make this situation easy. Is there a better solution than @Critter? This hast to be a repeating problem since states handling of taxes varies so much.
If she follows @Critter advice what form of the Federal return should she attach to her form?
I had VA taxes withheld is my option to follow @Critter or should I file for a VA refund and pay NC taxes since they are lower?
