Married but living apart

[JoeTaxDad]

I recently moved to RI but my wife still lives in MA.  I’m trying to figure out federal and state tax filing going forward.  We had been filing jointly in MA before my move.  She has income in MA and lives near work, thus staying there.  I only have investment income, no W-2.  How should we file Federal Taxes?  Married joint, married separate?  What state forms are required since they are based on the federal return>

[NCperson]

@JoeTaxDad run your taxes both ways; but it's highly likely that filing JOINT is still the better way to go.  96% of married couples file JOINT. 

The father apart your two incomes are the more likely JOINT is better.

Do you itemize? both of you must both itemize or both must take the standard deduction if you file Separate.   Neither of you can "mix and match".

You did not state your age, but if you are at least 65 years old and file Separate, you are NOT eligible for the new $6,000 deduction for Seniors.  

Congress just does not motivate tax payers to file Separate. 

[JoeTaxDad]

Thanks for the insight and yes I would run the federal both ways for a decision. Where I’m more confused is the state taxes for RI and MA for both of us and how the federal impacts them. Would state filing dictate married separate?  What would be required for my wife in RI as a non-resident and for me in MA as a non-resident?  I’m retired and

ky wife and s still working so income predominantly will be in MA. 

[NCperson]

@JoeTaxDad I suspect TT will walk you through this so neither of you are taxed twice on the same dollar.... you both would  have a filing status of "Separate" for the MA and RI state tax returns.   

I'll bet a dollar that you will find that filing JOINT on the federal return is much better than filing Separate.  If you are on SS and over 65, there is that 85% of SS that is automatically taxed and loss of the $6000 deduction.  Those are not insignificant. 

[SteamTrain]

As to filing the state tax returns?   That would require some folks (who might not be posting help in here at this time) who might have specific information on how RI and MA handle married couples your situation.

Some states, Like NC, allow you to file MFJ on both Federal and state, but then on the state forms, have you delineate what was earned in each state (for the resident vs part-year resident spouse), thus allowing the spouse who moved, to only indicate the $$ they earned in the former state as being taxable by that former state....and and on the new state return, the one who didn't move to that new state at all, to remove all their income from the state they didn't live in.

Other states may handle it differently.  While TTX should be able to handle it....IF You Know What you are doing...sometimes it may be complex enough that it might be a good year for you to hire a local tax professional this year to see how it needs to be done for RI &MA.  Certainly, in late January, you could certainly try out the software to see what the complications are for those two states  (careful though, the various state's software sets are sometimes not available until late January), but if it seems too messy by late Feb, then it may be time to get a local PRO to help (and not a seasonal storefront operation).

_______________

MA:  @Zbucklyo   @linear @sampsonmines     might know for MA

RI: ???

[linear]

MA won’t let you file jointly. You and your spouse must both be MA residents, with the same residency period.

https://www.mass.gov/info-details/filing-status-on-massachusetts-personal-income-tax#married

TurboTax will let you create tax returns for federal MFJ and state MFS. Unless things have changed, you need the desktop version for this.

[JoeTaxDad]

Thanks for the speciality in your response and the link to the mad status description. Seems our situation will be dictated by MA rules to file Fed as married separate and the do the same for each state, MA and RI for each resident as well as non-resident based on  income earned in that state.   We don’t itemize deductions with the new standard and the SALT cap. 

[linear]

I think it would be worth your while to contact Mass DOR and / or a tax professional. Note the statement: 

"Please also note that for tax years beginning on or after January 1, 2024, married couples must file a joint Massachusetts return if they filed a joint federal income tax return, unless one of the spouses wasn’t required to file a Massachusetts return because their Massachusetts gross income was $8,000 or less. The Department of Revenue will issue guidance providing for an exemption from the requirement or an adjustment in some cases where one or both spouses is a nonresident."

Unless you yourself have MA-source income, it seems unlikely that you would be required to file a MA tax return at all.

Note: I am neither a lawyer nor a tax professional..

[linear]

Took me a while to find, but here's a better answer: https://www.mass.gov/info-details/e-file-and-pay-your-ma-personal-income-taxes#guidance-for-taxpayer...

"An exception is allowed where the spouses have different tax years or residencies, and their joint Massachusetts income is equal to or below the surtax threshold ($1,053,750 for tax year 2024)."