pk
Level 15
Level 15

Retirement tax questions

@alexz9730 , I am not sure if I understand  your statement  about paying double taxes to Ca;lifornia becauise your spouse is now a US person ( citizen/GreenCard ).  As I understand your situation ( and because you  are deployed / employed by the US govt. ) :

(a)  Because you are married and your spouse is a US person  ( either because she has the GreenCard or because  you and she chose  for her to be treated as a US resident for tax purposes ) you  can as Married Filing Joint   ( MFJ ) for  Federal Tax.  This gives you a much larger standard deduction and thereby reduces you taxable income.  A similar situation is true for the California  filing.  Note that for California purposes, the taxes are computed based on your total income   and with some adjustment of the brackets  for filing status.  Thus if your spouse has no world income, filing jointly would still  be better than  filing as Married Filing Separate ( MFS).   See this   doc from H & R Block-->

California Taxes: 2023-24 Brackets & Rates | H&R Block® (hrblock.com)

(b)  For California purposes  the real difference comes into  play  when filing MFS  because of community  property  state rules.   A married  couple filing separately, each declares  and pays taxes on 50% of the combined  income.  May be this is what you were referring to.  Note though that this is true only when each  spouse files a return separately not when  they file as MFJ.

Hope this helps.

 

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