Multi state filing

[Sarah445]

Husband and I both worked 2 jobs in 2 different states. I worked in AL Jan-Mar, then CA Apr-Dec. Husband worked in SC Jan-Aug, then CA Aug-Dec. Filing fed as MFJ. What status do we file state taxes for AL, SC and CA? How do we apportion income to each state?

[ThomasM125]

You can file married joint or separate in each state. You would have to try it both ways to see which is best. Follow the instructions as you work through the program in each state to apportion income. It may be better to use the desktop version of TurboTax rather that the online version since you will only have to purchase one federal program. To file as married-separate in a state, you would have to prepare a separate federal return to complete that state's return. Since California is a community property state, you would have to divide up your income equally for the most part, so it may be easier to file as married-joint there. 

[Sarah445]

Thanks for your message. So for example, if we file MFJ as part year residents for each state (I believe we have to file MFJ for SC and CA as they have to match federal). Do we only report income earned when we were a resident and can that residence be different for each person despite MFJ? The software asks us as if we are 1 person, however, at different times of the year we were residents of different states.

[ThomasM125]

If you file married-joint, you report all of your income in the federal section of TurboTax. It will flow down to the state return. Then, depending on how each state's taxes work, you will see an opportunity to either enter the income earned in that state or you may see an option to get a credit for taxes paid to another state. You will do allocations as required based on the income applicable to each state, not according to who earned the income.