Two State Issue - being double taxed

[james-diefenderf]

Good day,

I live and work in Utah. All of my wages are earned in Utah. 

My wife lives and collect her pension and IRA distributions in Montana. 

We file Married-Jointly. I assume we need to file resident returns in both states. However, shouldn't my income only be taxed in Utah and her income only be taxed in Montana? No matter how I tried to show this it appears both states are taxing some of our income in both states. 

Please any help would be greatly appreciated. 

Thank you,

James

[JotikaT2]

You can file your federal return using the Married Filing Jointly status.

But for your state returns, both Montana and Utah allow you to file separately since you both resided in different states, and only earned income from each of those states. 

You will need to create mock state returns to do this. 

Please see the following link for more detailed instructions on how to set this up.

How to File MFJ for Federal but separately for state