Would I be able to file both Hawaii and Minnesota as MFJ?
For Hawaii, I would include a subtraction of my husband's "non-resident military pay" so that his income is NOT taxed in Hawaii.
For Minnesota, I would include a tax credit since I already paid my state taxes to Hawaii. Another question I have is, do we actually need to file for MN at all? MN does not tax active duty military, and if I am a non-resident with Hawaii income only... do we need to file at all?
By doing so, I would not need to mail separate state returns and would be able to e-file everything without overpaying or underpaying. Is there anything wrong with this route?
@MaryK4
