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yty01
Returning Member

How to file a married filing jointly return when we live and work in different states?

My spouse lives and works in California and I live and work in Michigan. We would like to file married filing jointly. I was wondering how to file these two state tax returns without double taxes on our income. Thanks.

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6 Replies

How to file a married filing jointly return when we live and work in different states?

You can still file as Married Filing Joint and would have to make a mock 2 Federal returns for each state return so only information from the mock Federal return will transfer to each of your state returns.  Your best bet is to use the CD/Download software.  See the following on how to file as MFJ and separate States.

 

How do I prepare a joint federal return and separate state returns?

 

 Each state has its own rules regarding this topic. For example, Arizona allows couples to file separately even if they filed a joint federal return, whereas Colorado does not. California doesn't allow it either, with the exception of active-duty military and certain nonresidents. Before proceeding further, make sure this is allowed by your state's tax laws.

 

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 five 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'll save time by entering less information.

 

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

  1. Prepare one married filing jointly (MFJ) return to file with the IRS.
  2. Prepare a mock married filing separate (MFS) 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 MFS federal return to prepare their state MFS return. Use 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.
  4. File this MFS state return, not the mock federal return that it pulls the information from.
  5. For the second taxpayer (spouse), label and use the second "mock" MFS federal return to prepare their state MFS return. Again, use only their income and their half of the deductions from the MFJ federal return.
  6. File the second MFS state return, 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 (learn more).

 

For detailed instructions, see the related section below for the taxpayer who needs to file a state return.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/small-business-processes/prepare-joint-f...

yty01
Returning Member

How to file a married filing jointly return when we live and work in different states?

Thank you for the response.

I have a follow-up question. As far as I know, California and Michigan state both require us to file MFJ if our federal return is filed as MFJ. Can we file MFS for these two state tax returns using the software as you mention above? Thanks.

How to file a married filing jointly return when we live and work in different states?

You are actually filing a MFJ Federal return.  The mock MFS is only to transfer each of your own information into each of your State returns.  You would not file the mock MFS returns.

yty01
Returning Member

How to file a married filing jointly return when we live and work in different states?

Sorry for misunderstanding. My question is that if I file MFJ in Federal income tax return, I need to file MFJ in our California and Michigan state income tax returns as well. If I need to file MFJ in these two state tax returns, how I can use the CD/Download software to file MFJ state return? As you mention above, your instruction is to file MFS state return. Thanks!

How to file a married filing jointly return when we live and work in different states?

You should still be able to choose Married Filing Jointly when you do your State returns.

PattiF
Expert Alumni

How to file a married filing jointly return when we live and work in different states?

You can file as MFJ for the federal and also use MFJ for California and Michigan. The important part is to set this up in the beginning in TurboTax under My Info. Make sure that everything is entered so that one person is a resident of California and the other is a resident of Michigan. 

 

My mock return listed Michigan as the first state to be worked on and then California. Take your time and answer the questions about residency and income in the different states as your proceed through the return. 

 

 

@yty01

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