If your spouse has no income to declare, you can delete her state return.
Generally, if you and your spouse are filing a joint federal return but you work in or are residents of different states, you need to file separate state returns. Sometimes this is required by state tax law; other times it is to your best interest to not include your non-resident spouse's income on your state return. Otherwise both states may try to tax the same income.
The calculations you need to do can be done in TurboTax online, but it is easier to do them with the desktop software. And you can file up to 5 returns using the desktop software. It will be tedious, but it is the best way to accurately minimize your taxes.
Please follow these instructions from TurboTax on this subject:
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.
Note: State returns prepared using the "Mock" federal returns will require you to print and file your state return by mail.
If your spouse has no income to declare, you can delete her state return.
Generally, if you and your spouse are filing a joint federal return but you work in or are residents of different states, you need to file separate state returns. Sometimes this is required by state tax law; other times it is to your best interest to not include your non-resident spouse's income on your state return. Otherwise both states may try to tax the same income.
The calculations you need to do can be done in TurboTax online, but it is easier to do them with the desktop software. And you can file up to 5 returns using the desktop software. It will be tedious, but it is the best way to accurately minimize your taxes.
Please follow these instructions from TurboTax on this subject:
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.
Note: State returns prepared using the "Mock" federal returns will require you to print and file your state return by mail.
Thank you. I should have clarified - I have filed jointly so we had to submit 2 joint state returns (hence I can't delete an individual state return)..so can I delete one of the joint state returns (the state where she resides and does not work) so we are not taxed there as well? Since she does not work, I did not submit any income for her but Turbo Tax still showed we owed taxes in the other state.
Yes, that will work for 2017. In 2018 - if she works - it would be wise to use the "mock" method. Save this thread!
Which desktop software? Cam you provide the link to purchase?
Please click this TurboTax Help link for the TurboTax product guide.
Is there a way to prepare a mock separate federal and later have TurboTax change it to an MJF, or vice versa, to avoid re-entering?
Yes, you can start a return as Married Filing Separate (MFS). If you want to be able to view the return or print it, you will have to pay without filing, but you can still make changes after you pay. Once you are done with your mock MFS return, you can go to the My Info section and change your filing status, marriage status, and add your spouse. All of your previously entered information will have been saved and you will not have to re-enter.
My husband lived in a state where there are state taxes for part of the year then moved to my and state, while I lived in a state where there are not state taxes. Can we still use the method described in the answer to file jointly on federal and separate on state as I will not have a state tax return? If so is it done exactly the same as described in the answer here?
The following steps will allow you to file jointly on your federal return and file separately on your state return. This procedure will work but you should consider if it is cost effective.
You and your spouse will prepare a federal return with filing status married filing joint, including both spouses’ information. File this federal return.
You will prepare a federal return with filing status married filing separate, including only your information. (Do not file this federal return.) Attach a state return to this federal return so your information will flow to the state return. File this state return.
You will prepare your spouse’s federal return with filing status married filing separate, including only your spouse's information. (Do not file this federal return.) Attach a state return to this federal return so spouse B’s information will flow to the state return. File this state return.
Clarifying question: I have read the thread and created a MFJ federal return and two mock MFS returns. My wife, who lives in our jointly owned home in Oregon, must attach her federal return to her state return. (She made no income other than dividends and distributions earned through our joint brokerage account.) Should she attach the MFJ federal return in this case (even though the data is pulled from the mock MFS return and the MFJ return has all my income on it), or will this technique not work for Oregon? Thanks, Bill
No, you can't use the "Fake" Federal returns for anything other than allowing the TurboTax program to do the math for the Separate state returns.
Mail the Oregon state return with a copy of your joint federal return.
Our scenario:
I work in a state that has no income tax
Husband works in a state that has income tax
We own homes in each state
How do we file federal taxes so that only his income shows on his state return?
Hi:
Does this filing method also work for couples with double income but reside in different states?
Hi,
i work in california and my wife study/work in nebraska. federal will be filing MFJ. but in both states can i file MFJ or MFS ?
checked with California and nebraska state tax agencies, both said i can choose to file MFJ or MFS, which ever is more beneficial to me. is this true ?
if CA state MFJ, will i be resident or non resident ? turbo tax showing me as NR.
thanks.
Hi ajay4,
I am in the same boat. I stay and work in California while my wife works in Texas. Doing MJF for federal. Wondering what about CA tax filing. In our scenario, MJF is beneficial for CA as well but I'm not sure if that is allowed. Also, Turbox tax shows 540NR form. Can you please share your findings. Appreciate your help.
Thanks
Hi,
We are in the same situation. I work and live in NC . My spouse work and live in NY. We both own houses in NC and NY. I am using turbotax software download and purchased both states NY and NC.
1. We filed federal tax returns as Married Filling Jointly by efile.
2. For my state NC state tax returns: Created mock Married filling separate and used my income and deductions. Filed only NC state returns by efile.
3. For my spouse NY state tax returns: Created mock Married filling separate and used my spouse's income and deductions. We were not able to efile NY state returns for my spouse because software doesn't recognize federal returns. I guess we have to file it by mail. There is software glitch there for your spouse filing state returns as MFS,=.
But these are following issues we don't have clarity and will be helpful if you can explain.
a. NC state resident (me): Should I also file NY state tax returns as Non-resident?
Mock MFS preparation created mock MFS federal as well as MFS NC and NY tax returns. I filed NC state only by efile. I didn't live in NY in 2020 (expect visiting) but we own house there.
b. NY state resident (spouse): Should my spouse also file NC state tax returns as Non-resident?
Mock MFS preparation created mock MFS federal as well as MFS NY and NC tax returns. Spouse was unable to filed NY state returns by e file.
Thank you
1. It is not a glitch that a state tax return can not be filed unless the Federal return is filled. Many state use the Federal data to actually calculate your tax. In those cases the state must be mailed with the Federal tax attached. (TurboTax does this)
2. No, you do not have to file a NY non-resident return unless you lived or worked there.
3. Similarly, Your wife does not have to file a NY non-resident return.
4. The Mock MFS return should be attached to your state return.
Hi @JohnB5677
I have a similar situation but with my spouse lives and works in Colorado and I like and work in NY. I will be filing jointly in my federal (MFJ). But for my state taxes, Colorado requires us to use the same tax filing status (MFJ) as my federal and NY allows us to file Married Filing Separate status (MFS) since I am NY Resident and my wife may be a CO resident. My question is whether I can do the following:
Is this correct? or Are these filings not allowed as per the NY and CO tax rules? Thanks
Hi @vamshi0626 ,
I am in the same boat too. I live and work in CA and my wife live and works in WA (No State Tax) for the entire 2020. We will be filing MFJ - Federal , but for state tax filing - CA , which one is the correct filing ? MFJ gives higher deductions than MFS like you mentioned. Can you help how did you proceed for the same .
Also TurboTax online doesn't show how its considering whether MFJ or MFS for State . If MFJ to be selected , will her WA income also be accounted while filing for CA state tax ?
Hi @KittyM
I live and work in CA and my wife live and works in WA (No State Tax) for the entire 2020. We will be filing MFJ - Federal , but for state tax filing - CA , which one is the correct filing - it should be MFS or MFJ?
MFJ gives higher deductions than MFS like you mentioned, but MFJ to be selected will her WA income also be accounted while filing for CA state tax.
Also how to do this mock filing and converting to individual state tax return work online. Cos it seem to does not give me that option. Not sure if i am using a wrong product. Which online product to be used to avail these options ?
@KD6883 TurboTax does not compare married filing joint and married filing separately. It will use your federal filing status on the California return.
California gives you the option to file separately if one spouse is a nonresident with no income from California. You will have to create a separate tax return if you wish to do this. California and Washington are both community property states so you will have to make an adjustment on your California separate return.
See: How do I prepare a joint federal return and separate state returns?
The only way to prepare a mock return online is to create a new user account with only your information. You will not be able to e-file the married filing separate California return because it does not match the federal filing.
When you are making the mock federal returns to file can you still file electronically to the state using these mock federal returns?
@mmrevans wrote:
When you are making the mock federal returns to file can you still file electronically to the state using these mock federal returns?
The e-filed mock federal tax return will probably be rejected by the IRS if it does not pass the IRS checks for being a valid federal tax return. If the e-filed federal tax return is not accepted by the IRS then the state tax return cannot be e-filed. The state return would have to be printed and mailed.