I was married in 2022. My wife lived in Indiana before we married and moved to Kentucky after we married. We will file a joint federal return. How should we file our state returns? (To complicate things, my wife failed to notify her employer that she moved to KY. Thus, she paid 100% Indiana state and local taxes.)
Yes, you can file a joint federal return.
On the My Info section, from the side menu, be sure it has your correct current address and that she made money in another state.
Indiana Department of Revenue states If you file a joint federal income tax return, you must file a joint Indiana individual income tax return. So you will need to file a joint Part-Year Resident form for Indiana. It will ask you to allot the federal income sourced to Indiana, so only income earned in Indiana will be taxed. For more information and examples please see their website.
Then, you can file a joint Part-Year Resident return with Kentucky and allot the income there. It will ask if you paid taxes to another state and you will give the amount paid to Indiana, so you are not taxed twice on the same income.
You will want to do them in this order, federal, Indiana, Kentucky.
Yes, you can file a joint federal return.
On the My Info section, from the side menu, be sure it has your correct current address and that she made money in another state.
Indiana Department of Revenue states If you file a joint federal income tax return, you must file a joint Indiana individual income tax return. So you will need to file a joint Part-Year Resident form for Indiana. It will ask you to allot the federal income sourced to Indiana, so only income earned in Indiana will be taxed. For more information and examples please see their website.
Then, you can file a joint Part-Year Resident return with Kentucky and allot the income there. It will ask if you paid taxes to another state and you will give the amount paid to Indiana, so you are not taxed twice on the same income.
You will want to do them in this order, federal, Indiana, Kentucky.
Thank you so much for the quick reply. This is very helpful.
One last question, if I may. We were married on June 3, 2022. I presume that I can estimate the income allocation between the states (IN and KY). As such, I feel Jan-May is reasonable for IN, and June-Dec for KY. Or, must I have my wife's employer slice the pennies?
Thanks, again.
No, splitting the income by those months is fine. The income will be reported and assigned to the states that were lived in during those months.