My husband is a VA resident while I am a CA resident. We live in the different states for the entire 2024. He has W2 and interest income from VA. I have self-employment 1099 and interest income from CA. We have joint rental income in CA. My understanding is we will file Federal return MFJ, CA tax return MFJ (540NR) and VA tax return MFS (Form 760).
1) Since CA is the community property state, do we need to report half of my CA income to my husband's VA return? 2) For CA rental income, do we report my husband's half on both CA and VA, then get the credit from CA return? 3) Or do we report my husband's CA rental income in CA return only?
Thank you!
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No, on your husband's MFS return to Virginia, he will report only his Virginia income and his share of the rental income. Look for screens in the VA interview that will allow you to adjust the amount carried over from your joint federal return to indicate the VA portion of wages, interest, and rental income.
On your California return, you'll report all your joint incomes, but claim a deduction for tax paid to Virginia.
Here's more info from VA Dept. of Taxation and from CA FTB.
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