Federal tax married filing jointly, state tax married filing separately

[Skrekka]

Hello,

I would like to receive your guidance on how to correctly file the 2021 tax returns considering the following conditions:

-  My wife resided and worked for the Company #1 in Texas up to August 13th 2021, after that she moved to Massachusetts to work for the Company #2. She rented a house at the beginning of September.

-  I resided and worked in Texas for the whole 2021. I officially moved to Massachusetts on Jan 1st 2022, working from home for the same Employer I was working for in Texas.

-  Our plans are to reside in Massachusetts indefinitely.

-  We want to file the Federal Taxes as married filing jointly

-  While compiling TurboTax online, the software suggested to file the State taxes as married filing jointly considering us as non-residents or partial year residents in MA for the 2021.  Is this correct even if my wife moved to MA and rented a different house from the one that I was renting in TX?

- If not, how can we file the Federal Taxes jointly and only my wife file the MA State taxes separately (there are not state taxes in TX so I would not need file any state tax return).

Thanks in advance for your support

Paolo

[JillS56 · Accepted solution]

No, married filing jointly is not correct.  Your wife would file as a part-year resident of Massachusetts.  The dates of residence would be 8/14/2021 to 12/31/2021.  According to Massachusetts tax filing status definitions, "If married taxpayers have a Massachusetts residency tax year that begins and ends on different days, they must file married filing separately, assuming each spouse is required to file."  The rules further state "Please note that a joint return isn't allowed if both you and your spouse weren't Massachusetts residents for the same portion of 2021."

Based on the rules for Massachusetts, your wife would file married filing separately for tax year 2021.   Beginning in 2022 you would file married filing jointly.

To file a married filing separately in TurboTax follow the below steps:

Prepare a state return for the secondary taxpayer (spouse)

The secondary taxpayer is the second person listed on the return.

Like the steps above (see linked article below), you'll create a second new "mock" federal MFS return for the secondary taxpayer. This is the only safe way to keep the two mock federal returns connected with the correct state returns.

1. In TurboTax (CD/Download version), start a new return by choosing New Tax Return from the File menu, and then selecting Start a New Return.
2. On the transfer screen, select Continue Without Transferring. Do not transfer information from last year's joint return!
3. Create the mock federal return entering the secondary taxpayer's personal information, income, and deductions. For the filing status, choose Married filing separately.
4. Be sure you do not include any deductions already claimed by the primary taxpayer. Only the secondary taxpayer's income and deductions should be entered in this mock return.
5. When finished, run the federal error check (Review Analysis).
6. Then select State Taxes and complete the secondary taxpayer's state return.
7. When finished, print the state return for your records and paper-file the secondary taxpayer's state MFS return.

Important: Do not file the mock MFS federal return you created here. It was only used to separate the spouse's income and deductions for state tax purposes. However, do not delete the return in case you need to view or amend the spouse's associated state MFS return.

How to Change State Filing Status to MFS

[Skrekka]

Thanks a lot JillS56!

I purchased the Download version and created the following:

- 1 Federal MFJ return for me and my wife (no State) that I will e-file

- 1 Federal (mock) + State MFS return for my wife only that I will print and paper-file (only the State portion)

However, I have another question.

During my wife State return's creation process, the following information has been asked:

Quote

We need some information from your Spouse's 2021 tax return. Massachusetts wants to make sure both of you are reporting the same income and family information.

Enter your Spouse's federal total income and adjusted gross income (AGI).

Unquote

Since me and my wife are doing the MFJ for the federal portion, what information shall I insert here? The portion of the income and AGI related only to myself or the one coming from the 2021 MFJ Federal return?

Thanks in advance for your support

[RobertB4444]

@Skrekka  You will enter her AGI  and income from the mocked up MFS return that you are using.