Can I file state tax for one as Married filing separately (VA) and for another state as Married filing jointly (NJ) when my wife and I are filing federal taxes jointly?

[BMcCalpin]

You can file married, separate in Virginia, but the rules vary based on whether you are a resident, non-resident or part-year resident, and also where both spouses live. The following text is from the Virginia website (https://www.tax.virginia.gov/filing-status)

Note that TurboTax may or may not offer you the chance to change filing status, depending on which case below you match.

Resident:

Filing Status 3 - Married, Filing a Separate Return: If you and your spouse filed separate federal returns, you may use this filing status. If you and your spouse filed a joint federal return, but only one of you is a Virginia resident, the resident must use Filing Status 3.

Non-resident:

Filing Status 4 - Married, Filing a Separate Return: A separate Virginia return MUST be filed if: (1) both husband and wife are nonresidents and have income from Virginia sources, but do not choose to file a joint return under Status 2; or (2) both husband and wife are nonresidents and both had income, but only one had income from Virginia sources; or (3) only one spouse is a nonresident and the couple cannot elect to file a joint resident return.

Part-year resident:

Filing Status 3 - Married, Filing a Separate Return: If you and your spouse filed separate federal returns, you may use this filing status. If you and your spouse filed a joint federal return, but only one of you is a Virginia resident, the resident must use Filing Status 3.

[skylark28]

OK, so then how does one do it?  I click the thing that says it's not common, but explains why I might need to, but there's absolutely no clear way to do it.  I even tried to go to the forms and fix it there, but it won't let me.  It's clear from the VA instructions that my filing needs to be married separate while my fed was married joint.  So why won't the software let me override?

[fanfare]

You definitely don't want to override.

You also want to avoid complex filing patterns that you can't even figure out how to initiate, let alone complete correctly.

[edwardandsarah]

Was there ever a resolution to this question? I’m in the same boat. My wife received a 1099-NEC from VA. We both live full-time in MD and work full-time in MD. I don’t have any VA income so I’m guessing my wife will need to file Married, Filing a Separate Return. No clue how to do it though. 

[Vanessa A]

Yes.  If you are non-residents of VA and only one spouse has income for VA, you can file as Married Filing Separate for the VA non resident return.

[edwardandsarah]

I looked a bit further. 

Found this for nonresidents of Virginia:

Filing Status 2 - Married, Filing a Joint Return: You and your spouse may file a joint return if: (1) you filed a joint federal return; or (2) neither of you was required to file a federal income tax return; and (3) both spouses had income from Virginia sources. If only one spouse had income from Virginia sources, a separate return must be filed under Status 4. If one spouse had Virginia source income and the other spouse had no income from any sources, use Filing Status 3.

We satisfy 1) so we are able to file a joint return. Is that your understanding?

[LindaS5247]

Yes, for your Nonresident Virgnia state tax return, you can file as Married Filing Separately. 

Click here for How to File a Nonresident Tax Return.

[edwardandsarah]

Here’s the problem. I am filing my federal return as married, filing jointly. Because of that, TurboTax doesn’t let me choose married, filing separately for VA. I would have to redo my federal return and update its filing status. 

ideally, I will have a married filing joint for federal, married filing joint for MD state return, and a married, filing separately for VA state return. 

what do I do? Is this possible in TurboTax?

[LindaS5247]

We recommend you use the TurboTax Desktop software version to do this because you'll only need to pay for one TurboTax product (you can file up to five returns).

If you already started your return in TurboTax Online, we recommend that you transfer your tax file to the Desktop version. You'll save time by entering less information.

Here is how you will do this:

1. Prepare one married filing jointly (MFJ) return to file with the IRS.
2. Prepare a mock married filing separate (MFS) return for each taxpayer. This is for your records only and will be used to generate separate state returns for each person. The mock federal returns are not filed.
3. Then, for the first taxpayer, label and use the first mock MFS federal return to prepare their state MFS return. Use only their income and their half of the deductions from the MFJ federal return.
   • This ensures that TurboTax only transfers the first taxpayer's income to their married filing separate state return.
4. File this MFS state return, not the mock federal return that it pulls the information from.
5. For the second taxpayer (spouse), label and use the second "mock" MFS federal return to prepare their state MFS return. Again, use only their income and their half of the deductions from the MFJ federal return.
6. File the second MFS state return, not the second mock federal return that it pulls the information from.

Name each TurboTax federal return so you will know the correct MFJ federal return to file, and to determine which mock MFS federal and state return is for which person.

Note: State returns prepared using the mock federal returns will require you to print and file your state return by mail (learn more).

For detailed instructions, see the related section in the article below for the taxpayer who needs to file a state return.

Click here for instructions on How to File a Joint Federal Return and Separate State Return.

Remember: Make sure you do not file the mock MFS federal return you created here. We used it to separate the spouse's income and deductions for state tax purposes. 

Keep a copy in case you need to view or amend the spouse's associated state MFS return.

[edwardandsarah]

I think I get it. 

in summary: I will create a married filing jointly federal return and a married filed jointly maryland return (our state of residence and work). 

I will create a mock married filing separately federal return for my wife and then use that information to populate a VA return for her Virginia source income (I.e. the 1099-NEC she received). I won’t do the same for myself since I don’t need to file a return for VA since I have no income from that state. 

I’ve never done a married filing separately return so I have a few questions. Given we have two kids, does my wife only claim 1 (even if I had more income in 2023)? Also, what else do I half so half goes on her mock return? We paid for child care in 2023, does she claim half? We also have a joint bank account. Does she claim half of the interest? Lastly, we gave money to a charity. Does she claim half?

ialso have a brokerage account (it’s under my social security number). Can my wife claim half of any dividends received or long term gains? I’m thinking not since it’s not also in her name but I just want to double check. 

[AmyC]

1. Two kids allocate based on income.

2. Joint bank account, yes, claim half.

3. Charity, yes, half

4. Brokerage, your name, not hers

5. It depends on the ownership, if not in here name, not on her MFS.

You can allocate half of the joint income but not income in your name. For the mock Federal, follow the VA requirements and think as if you would actually file a separate federal return, who would claim what based on income. On 763 Instructions, page 11

A spouse may claim only those personal exemptions, itemized deductions and other deductions that could have been claimed had a separate federal return been completed. If the number of dependent exemptions or the amount of itemized deductions cannot be accounted for separately, they must be proportionately allocated between each spouse based on the income attributable to each. 

For example, if you file a joint federal return, one of you is a nonresident and you are unable to account separately for the child and dependent care deduction, that deduction must be proportionately allocated between each spouse based on the income attributable to each. One spouse may never claim less than a whole personal exemption. Even in the case where spouses have equal income and one child, only one spouse may claim that child.

Her income and her half of your joint income along with exemptions based on income allocation.