I am active duty Navy stationed in Guam with my wife. We are both Illinois residents. This will be my wife’s first year filing taxes. My entire income has been military and she worked 2 months at a local store. She received her W-2GU. We originally planned to just file federally joint and file state married but filing separately so we didn’t have to worry about the Guam part and getting it changed over to Illinois. I have been told she either has to file federally and not pay Guam or file Guam and I would have to file married filing separate. The later would cost us some tax credits. I am wondering where I put that income on the 1040/TurboTax questioning.
