How to file taxes jointly while working in different states and having home in both?

[rational_rascal]

For a part of this year, my spouse and I worked in different states (CT & FL). We have different residencies and apartments in those states and share our time between the two places. How should we file jointly as a married couple in this case? From what I know, the filing status needs to be the same for federal and state taxes. 

[MichaelG81 · Accepted solution]

Depending on where you lived on December 31, 2022, that may be considered your residence/part year residence. If both you and your spouse moved on the same date to each state, you should be able to file jointly, however, if you moved on different dates, you may have to file separately and this is a lot of fun. Forms for Non-residents and Part Year residents should be ready to file soon for Connecticut, See forms availability here.

Caution: Each state has its own rules regarding this topic. For example, Arizona allows couples to file separately even if they filed a joint federal return, whereas Colorado does not. California doesn't allow it either, with the exception of active-duty military and certain nonresidents. Before proceeding further, make sure this is allowed by your state's tax laws.

You can use TurboTax Online to file separate state returns, but we recommend you use the CD/Download software version to do this because you'll only need to pay for one TurboTax product (you can file up to five returns).

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

Here's a brief overview of the procedure (see the sections below for detailed steps):

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.

Be sure to name each TurboTax federal return so you know the MFJ federal return to file, and which mock MFS federal and state return is for which person.

Yes, this can be tedious, but this is often the best way to ensure you accurately minimize state tax situations with two different state incomes.

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 below for the taxpayer who needs to file a state return.

Prepare a state return for the primary taxpayer

Prepare a state return for the secondary taxpayer (spouse)

Related Information:

• When would I have to file returns in more than one state?
• How do I file a part-year state return?
• Can I prepare and file just my state return using TurboTax?
• How do I allocate (split) income for a part-year state return?
• How many state returns can I prepare in the TurboTax CD/Download software?

@rational_rascal