Help with taxes- Married but working/living in different states

[RockB]

Wife and I got married in October 2024 and we live different states due to jobs. I live in PA while wife lives in CA. We both are considered resident for tax purposes as we have been in these states for a while as pass the substantial presence test. What is the best way to file the taxes?

1. Should we file federal taxes as married filing jointly? Based on my research this would be better than filing separately in terms of tax refund

2. state taxes- this is where I am confused. Do we file our state taxes as married filing separately? Will my PA income be taxed in CA and vice versa? 

[KeshaH]

You can file Married Filing Jointly for your federal tax return.

California allowed married taxpayers with mixed residencies to file jointly. You would need to file a part-year resident return and allocate only your wife's income to California.

For Pennsylvania, you can file Married Filing Jointly for convenience, but this may subject your wife's income to Pennsylvania tax. Filing separately in Pennsylvania may be the best option, but you can try it both ways to see what's best.

[RockB]

Thanks.

Does this mean we can file federal taxes as married filing jointly while state taxes should be filed as married filing separately? Just so I understand this correctly 

[KeshaH]

Yes, you can file your federal and California returns as married filing jointly while filing your PA return as married filing separately.