A1. You can file both federal and state as MFJ. The CA return will have zero income, full refund since no work was done in CA.
A2. Since your return shows no work in CA, CA should issue a full refund.
A3. Since the w2 shows CA income, the state may send you a letter stating you owe taxes. You reply that your wife never worked in CA, only from home in WA. A letter from the employer would be great, if that happens.
A4. You are correct, the federal does not care how you file the state.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
