I live in Texas, my husband lives in New Mexico

[44lisat]

I live in Texas, my husband has residency in New Mexico. He does contract labor in Texas. What is our best option to file, as we need to file joint on Federal taxes?

[TomD8 · Accepted solution]

New Mexico's rule is that you must use the same filing status on your New Mexico return that you used on your federal return. If you file MFJ for federal, then you must file MFJ for NM.  

 Since your husband is a resident of NM, all his income is taxable by NM, regardless of where he earns it.