Assuming you're filing a joint return, you show the mailing address that you want the IRS and/or state tax departments to contact you at.
You will have to file both a MI and a NC tax return. You may have to report all your income on the state returns, but you will only pay NC tax on your spouse's income and MI tax on your income. TurboTax can handle these complex calculations. You essentially allocate your incomes as MI or NC sourced.
"The filing status claimed on the federal return must also be claimed on the North Carolina income tax return. ...... However, for a married couple filing a joint federal income tax return, if either the taxpayer or the taxpayer’s spouse is a nonresident and has no North Carolina taxable income for the taxable year, the filing status married filing separately may be claimed on the North Carolina income tax return. Importantly, once a joint return is filed, separate returns may not be filed for that year after the due date of the return". Reference: https://www.ncdor.gov/taxes-forms/individual-income-tax/your-filing-status You may want to try preparing returns both ways to see which is better.
Michigan requires you to use the same filing status that you used on the federal return.
