As noted by @TomD8, the rules get cumbersome with facts such as yours.
The rules are explained in the instructions to both the form 760 and 763.
In reading those rules, there are too many unanswered questions for someone on this forum to provide an accurate response.
You will need to review the rules and determine your options and then run the numbers to determine which filing method is best based on your specific facts.
Consulting with a VA tax professional may be in order to provide some direction / advice.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
