My husband and I are dual military. We both have different home of records, Nebraska and Idaho. How do we file state taxes separately?

[smybanez]

I am active duty military, from Nebraska. My husband is also active duty military, from Idaho. We are both stationed in North Carolina. How do I file state taxes separately?

[JulieH1 · Accepted solution]

It is definitely doable to file separate states in TurboTax but it is a little complicated.  I will paste the entire FAQ on how to do it here for your review.

If you and your spouse are filing a joint federal return but you work in or are residents of different states, you may need to file separate state returns.

Sometimes this is required by state tax law; other times it is to your best interest to not include your non-resident spouse's income on your state return. Otherwise, both states may try to tax the same income.

You can use TurboTax Online to file separate state returns, but we recommend you use the CD/Download software version to do this because you'll only need to pay for one TurboTax product (you can file up to 5 returns).

Tip: If you already started your return in TurboTax Online, we recommend that you transfer your tax file to the CD/Download version. You will save time by entering less information.

Here's a brief overview of the procedure, see the sections below for detailed steps:

1. You'll prepare one married filing jointly (MFJ) return to file with the IRS.
2. Prepare a "mock" married filing separate (MFS) tax return for each taxpayer. This is for your records only, and will be used to generate separate state returns for each person. the mock federal returns are Not filed.
3. Then for the first taxpayer, label and use the first "mock" married filing separate (MFS) federal return to prepare their state MFS return, using only their income and their half of the deductions from the MFJ federal return.. 
   This ensures that TurboTax only transfers the first taxpayer's income to their married filing separate state return. File this MFS state return, but not the mock federal return that it pulls the information from.
4. For the second taxpayer (spouse), label and use the second "mock" MFS federal return to prepare their state MFS return, again using only their income and their half of the deductions from the MFJ federal return.
   Again, file the second MFS state return, but not the second mock federal return that it pulls the information from.

Be sure to name each TurboTax federal return so you know the MFJ federal return to file, and which mock MFS federal and state return is for which person. 
Yes, this can be tedious, but this is often the best way to ensure you accurately minimize state tax situations with two different state incomes.

Note:  State returns prepared using the "Mock" federal returns will require you to print and file your state return by mail, please click here to learn more. 

https://ttlc.intuit.com/questions/1901214-how-do-i-prepare-a-joint-federal-return-and-separate-state...