Unable to select Married Filing Separately in NY state tax

[jobo_bobo]

Hello

We are married and filling jointly. However, I lived in DC (working in Maryland) for the entire 2019 and my wife was in NY working there for the entire year. While DC allows me to file Married Filing Separately, NY state return defaults to Married Filing Jointly and won't allow me to file separately. Am I missing something? How do I do NY state tax as married filing separately in Turbotax? Please help.

[SusanY1 · Accepted solution]

The TurboTax CD/Download product (found HERE) is the preferred product to file your federal returns jointly, and state returns separately. 

Here is how to do this in TurboTax CD/Download:

1. Prepare your joint federal return in TurboTax as you normally would. 
2. Prepare a mock Married Filing Separately (MFS) federal return for each spouse who will file separately in any state.  You will not file these federal returns, but they will be used to create the state returns.
3. For the separate return, include only the income and deductions that apply to that state. 
4. File your joint federal return as prepared in the joint file.
5. If filing jointly in one state, transmit this return with your federal file.  Otherwise, transmit only your federal file from the original MFJ return.
6. Using the mock MFS file that you have now created, file each state return separately.  You may have to print and mail state returns when filing separately from your federal return. 

If you prefer to use online TurboTax, you follow the same instructions. Instead of creating three files on your computer, you will create three TurboTax accounts, each with a unique user name and password.

[jobo_bobo]

Thank you @SusanY1 

Is it perfectly OK to do it from the legal point of view? I mean, will the numbers for state taxes stay the same if I prepare them as separate filing regardless of federal being either jointly or separately filed? Just want to be sure there is really no financial connection between federal and state.

Thanks again!

[JotikaT2]

New York uses the same filing status as you use for your Federal return, which is why New York is picking your return up as Married Filing Joint.  Please see the following link for more information on the filing status in New York.

Filing status for New York

If you want to file in New York as Married Filing Separate, you will need to do the same for your Federal return.  

Another option is to keep using the Married Filing Joint filing status, and then report a credit for the state taxes paid to DC. 

In order to claim a credit for taxes paid to another state, you will need to complete your nonresident tax return first. In this case, you would select DC as your nonresident state.

Once you complete this, you will work on your resident return (assuming New York in this situation). 

While answering the questions in the New York state return, you will see a screen for Credits and Taxes.  When you reach this screen, locate the section titled  "Credit for Taxes Paid".

1. Select "Taxes Paid to Another State"
2. Answer the questions until you reach "Other State"
3. Here you will select the nonresident state where you paid taxes under "Other State"
4. Select Continue after entering the state name.
5. You will then be prompted to enter the portion of income taxed by the other state
6. On the next screen, enter the amount of tax from the Other State

[chicken11]

• my state will not download

[Bigglen1]

I am using SusanY1's advice for the Fed-MFJ vs. State MFS needed myself.

I hope her suggestion is still valid.