MaryK4
Expert Alumni

Get your taxes done using TurboTax

You will want to file Part-Year Virginia and Part-Year DC.  For DC, filing joint or separate has not impact since you had no income.  Because your spouse worked for the same DC employer, she could file the income she earned in VA as a nonresident, then take a credit for taxes paid to another state on the Virginia return, or report it only in Virginia.  (This is because of the reciprocity agreement- but either way there would be no particular advantage or disadvantage)

 

The Virginia Married filing Separate on the same return usually results in savings:

Each spouse must claim his or her own income. Income must be allocated to the spouse who earned the income and with respect to whose property the income is attributable. The key to receiving the maximum benefit is the allocation of exemptions and deductions. Careful consideration should be given to the allocation of any exemptions for dependents. As a general rule, those exemptions should be allocated to the spouse who has the highest income, particularly if that person's income is over $17,000.

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