Married and husband is active duty AK resident. We live/stationed in Woods Hole, MA. Non AD spouse commutes to work in Fairfax VA. Can we file without doing filing separately at state level?

[DanielV01]

What is non AD spouse state of residence?  Alaska also or another state?

[DanielV01 · Accepted solution]

Your state filing depends.  As a military spouse, your residence is also Alaska if you have ever lived in Alaska with your husband.  Here is an FAQ with more information on this:  https://ttlc.intuit.com/replies/3302300

If that is the case, you would only need to file a Virgina and/or a Massachusetts return if state tax was taken out.  You would allocate your income earned in other states to [all of it] because your income would only be taxable to Alaska, which has no income tax.

However, if you are not an Alaska resident because of the Military Spouse rules above, you will need to file a Massachusetts resident return and a Virginia nonresident return.  

Massachusetts will not allow you to file a joint return, because your husband is not a Massachusetts resident (state filing law).  To set up a Married Filing Separate return, please see the following FAQ:  https://ttlc.intuit.com/replies/3301995

Virginia, likewise, requires both of you to have Virginia income to file a joint Virginia return.

Prepare the Virginia return first if this is the case, so that TurboTax may calculate the amount of state tax you pay to Virginia as a credit on your Massachusetts return.

[JohnC11]

This something that you and your spouse's Wisdom, Experience, and Exploration can only provide. I can only provide example of how I've had to approach this same issue, I served as well with multiple Stateside locations as a Service Member.

Different States have different tax rates, as well as varying standards regarding what consumers are responsible for that's specific to that State. Education, minor dependents, and other things may provide opportunities in some States that other States don't offer to their residents.

I recommend any consumer with the choice and opportunity of changing their residency due to themselves or a Service Member spouse consider the following:
•What will my State Return outcome at the end of the year be in State A or State B, under my current conditions?
•What will my State Return outcome at the end of the year be in State A or State B, if my conditions change short term?
•What will my State Return outcome at the end of the year be in State A or State B, if my conditions change long term?
•What benefits does Residency as a Citizen afford in State A versus State B?
•Will I irrevocably lose any benefits by changing Residency now, or in the future?
•Will I lose out on any potential benefits by not switching to another State, if they have

You're on the right track seeking advice regarding this. I encourage you discuss and share this with your spouse, for you to understand your options.

I'm very pleased and proud to serve you both, as he serves as I had. Thank you so much for this opportunity.

If for some reason you need to be connected with a Tax Advice expert, it is part of the benefits of using TurboTax Deluxe.  Feel free to comment if this is necessary, and we'll provide you instructions how to reach out to us.

We're here to help.