Does my new green card spouse pay state taxes with me? She does not have a job and it's her first time with a social security number. Her home address is now mine.

[alexz9730]

She's getting her green card with her social security number this coming year. I fall under the California state. I'm not sure if she or I pay her state taxes because she won't work and she's over seas with me because I'm military. On the visa application i put my own home of record which is California. California taxes are ridiculous enough but paying them 2 times is something I have to think about.

[pk · Accepted solution]

@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.

[Opus 17]

If a person has a green card, they are required to file a US tax return and report and pay tax on all their world-wide income, even if they do not live or work in the US.  This is one of the obligations placed on you for getting that green card.  Regardless of how your spouse files, she can claim a credit or deduction on her US tax return if she pays tax to a foreign country on the same income, that will reduce the burden of double-taxation.  

Your options are to each file as married filing separately, or file one joint return as married filing jointly.  With married filing separately, you each list only your own specific income and deductions.  MFS usually results in a higher tax bill, because some deductions and credits are reduced or disallowed, but it may have other advantages.  With married filing jointly, you file one return listing all your combined income, deductions and credits.  Whether you file MFS or MFJ, your spouse can claim the foreign tax credit.

Your real problem is with state taxes.  Your wife is not a resident of CA (she is not domiciled there) even if you have the same address on her Visa application, because residency is determined by all the combined facts and circumstances.  However, her income may be taxed in CA due to community property rules.   @TomD8  may be able to help with filing in California. 

Then lastly, your wife may be a dual-status alien for 2024.  That means that her income from before the marriage is only taxed in her home country, unless it is considered "US source" income, and then all her income from after the marriage is taxed in the US.  Dual-status is a situation that is not supported by Turbotax, and you might need professional assistance for the dual-status year (it gets easier when she has the green card for the whole year). 

[TomD8]

California military servicemembers who leave California under PCS orders become nonresidents of California for income tax purposes.   The same rule applies to the non-military spouse of the servicemember.

Nonresidents of California are taxed only on California-source income.  Thus, if you and your wife are stationed outside California all year on PCS orders, and neither one of you has any CA-source income (one example would be rental income from property located in California), then you will have no tax obligation to the State of California.

This CA tax publication has the full details on California's tax rules for military personnel:

https://www.ftb.ca.gov/forms/2023/2023-1032-publication.pdf