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My husband will live/work in CA during the week (all year) while I reside in AZ in the house we own. We have one income. How should we plan to file our taxes for 2020?

 
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3 Replies

My husband will live/work in CA during the week (all year) while I reside in AZ in the house we own. We have one income. How should we plan to file our taxes for 2020?

You will file one  federal return  and then a non resident CA return and a resident AZ return  and you MUST complete them in that order in the Turbotax program to get the correct credit on the AZ return for the taxes paid to CA. 

My husband will live/work in CA during the week (all year) while I reside in AZ in the house we own. We have one income. How should we plan to file our taxes for 2020?

@Critter   @jtorres614 

 

I think it's reversed for an AZ Resident/CA non-resident situation.  CA/AZ cross border workers prep taxes in a different order from most of the rest of the country. The AZ Resident is done first, then the credit is on the CA non-resident tax return.

 

"Important: As an Arizona resident, nonresident returns filed with the following states DO NOT QUALIFY for the credit on the Arizona return:  Alaska, California, District of Columbia, Florida, Indiana, Nevada, New Hampshire, Oregon, South Dakota, Tennessee, Texas, Virginia, Washington and Wyoming.
You may be able to claim a credit for taxes paid to Arizona on the nonresident return filed with any of those states listed above."

 

top of page 2  of the 2019 AZ form 309 instructions: 

 https://azdor.gov/forms/tax-credits-forms/credit-taxes-paid-another-state-or-country

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A bigger issue I see is whether the husband might really be considered a CA resident by CA, with 4-5 nights a week in CA all year....and only one year? or continuing to be the case for for several years??  Those who push the 6 month limit (183+ days) living in CA are getting themselves into a hazy area.  (but that's just a personal opinion)

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

My husband will live/work in CA during the week (all year) while I reside in AZ in the house we own. We have one income. How should we plan to file our taxes for 2020?

Yes ... I forgot those 2 states do things backwards.  I highly recommend you seek local professional help this year for the state returns so you are educated on the proper way to file them.

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