Yes, we can break this down so that you know what should be reported on each state return and how to file. Several states can cause some work on your part to make sure they are complete and accurate.
- California (CA) - all of your income and the sale of your house would be reported to this state. You can split your joint account income and each report their share on their state.
- Kansas (KS) - All of your wife's income will be taxed to KS and Missouri (MO). On the KS return, you should receive a credit for taxes paid to MO. You may need to write down the actual tax liability in the MO return just to be sure you have the right credit on the KS return.
- When you are in the KS return, you will watch for the screen for Credit for taxes paid to other states. In TurboTax this should be automated based on the W-2 and the presence of the MO tax return. See the KS instructions, page 7. Be sure to mark the appropriate residency on both states.
KS Law: Kansas law provides that if a husband or wife is a resident of Kansas while the other is a nonresident of Kansas, and file a Married Filing Joint federal return, they must file a Married Filing Joint Kansas return and file as “nonresidents” of the state of Kansas.
CA Law: if you file a joint return and either spouse/RDP was a nonresident or a part-year resident in 2023, file Form 540NR, California Nonresident or Part-Year Resident Income Tax Return.
Exception for changing your filing status for CA: If you file a joint return for federal purposes, you may file separately for California if either spouse was one of the following:
• An active member of the United States armed forces or any auxiliary military branch during 2023.
• A nonresident for the entire year and had no income from California sources during 2023.
@mbog
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