First, as @CatinaT1 states be sure you have a VA filing requirement. VA says VA source income can be from physically working in VA (see the link here and extract below). Having a client in VA that you do not go to VA to do work for does not create VA source income. If your husband does go to VA to work then he would have VA taxable income.
If you do have to file in VA, you do not have to file a separate VA return if you file a joint federal return. If you file a joint federal return you can use filing status 2 for VA as both VA nonresidents.
In TurboTax you would indicate in the "My Info" section you were resident in SC and did not reside in any other state. Then use the "Other State Income" topic and indicate you had income from another state (VA). In the VA state interview you will allocate to VA only the income that belongs to VA. VA will use all of your income to figure the tax only on the VA income.
You will e-file a federal joint return, a SC joint resident return and a VA nonresident joint return.
"Income from Virginia sources" means income derived from labor performed, business conducted, or property held in Virginia, as well as lottery prizes and certain gambling winnings. Examples of Virginia source income include:
- Wages or salaries received for services performed in Virginia;
- Income received from the rental or sale of Virginia real estate;
- Income, including interest, received from a partnership, S corporation, or other business that operates in Virginia;
- Prizes paid by the Virginia Lottery, and gambling winnings from wagers placed or paid at a Virginia location.
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