turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

sauvik
New Member

Married couple living and working in different states part of the year

Hi,

We are a married couple who has always lived in New Jersey and worked in New York till mid July 2019. So this is how the scenario is:

1) Both myself and my spouse: lived in New Jersey and worked in New York till July 15, 2019

2) I moved to Chicago for my employment - started to live and work in Chicago since July 16, 2019

3) My spouse continues to live in New Jersey and work in New York

 

By the end of the year - there are two possibilities:

- Both of us leave USA in November 2019 and start living and working in India starting December 2019

- I continue to live and work in Chicago AND my spouse continues to live in NJ and work in NY through Dec 2019

 

My questions are:

1) does it really matter for federal and state tax return purpose where we live and work at the end of the year considering the above two possibilities mentioned?

2) I believe we can file joint federal tax return. I am not sure what the best option for state tax return purpose is. Should we do all three state tax return - NY, NJ, IL ?

3) Do we need to submit W4 to our employers for correct tax deductions? Trying to determine what best option is for both federal and state filing.

 

Many thanks for your time! Kind regards.

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies

Married couple living and working in different states part of the year

1) does it really matter for federal and state tax return purpose where we live and work at the end of the year considering the above two possibilities mentioned?  For the feds it is immaterial where you live or work.  For the states ... you will need to determine which state you are a resident each of you are ... if you keep your NJ homesteaded residence then you will still be NJ residents and non residents of any other state's where you work. 

 

2) I believe we can file joint federal tax return. I am not sure what the best option for state tax return purpose is. Should we do all three state tax return - NY, NJ, IL ?  You can review each state's requirements to see if you are even allowed to file separately if you file the federal jointly.... but you will need to file a return in every state where you work and/or live as a resident.  I highly recommend you seek professional assistance with a complicated situation that you will have to find the best option for your returns.

 

3) Do we need to submit W4 to our employers for correct tax deductions? Trying to determine what best option is for both federal and state filing.   Yes you will need to complete new W-4 forms so that the employers will withhold the correct taxes for each state you need to have them withheld ... best advice I can give you is to complete ALL 3 state returns  BEFORE you file any of them as the non resident returns will impact the resident one ... you do not need to file them all at the same time simply complete them all at once.

Hal_Al
Level 15

Married couple living and working in different states part of the year

For state tax purposes, you are still a resident of NJ, since you have  a domicile with family living there. So, you will include your IL  income on your  NJ and file as a full year resident.  You will file a non-resident IL return and pay tax on the IL income.   NJ will give you a credit, or partial credit,  for the tax you pay to IL

 

However, if your move is permanent and you take positive steps to establish residency (drivers licence, voter registration, car tags), you will file as a part year resident, for IL and a part year NJ resident return.  You can still   file a joint NJ return (if  in future years you are a full year IL resident, you may have to file separate returns, see https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git6.pdf)

 

Regardless of your state filing, you can (and should) still file a joint federal return. 

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies