If I need to file 2 state taxes in 2 different states for my wife and I, who can I claim my child as a dependent on?

[Kruk]

I am active duty military and claim NY as my state of residence for tax purposes.  NYS refunds all states taxes to military members not stationed in NY.  My wife is a resident of Virginia and needs to file VA states taxes.  Federally we filed a MFJ, however because of my wife working in VA, we have to file MFS for NY (for me) and MFS for VA (for my wife). 

When I file my wife's taxes in VA, can she claim our child as a dependent on her VA taxes?  NYS already refunds all my NY taxes so I dont need to claim him as a dependent in NY.

I know about the SCRA, but my wife needs to be a resident of the state we physically live in for her job.

Thanks.

[JotikaT2]

As long as she is the only one claiming the dependent on a state return, then yes, she should be able to claim your child.  Be aware, the general rule is the person who has at least half of the federal adjusted gross income would be the person to claim the dependent.  But since your New York state return does not have a tax liability, you can let the Virginia state taxing agencies know why the dependent was claimed on your wife's MFS state return if you are ever questioned by them.  Please see this excerpt from the Virginia Department of Revenue instructions.