Married couple living in different states, filing jointly. Spouse does not work. When filing her state return, it captures my W2 and says we owe money. How to avoid this?

[vamshi0626]

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

[vkr]

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

[JohnB5677]

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.

[kurt166]

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:

1. File Federal Income Tax - Married Filing Jointly
2. File NY State Tax - Married Filing Separately 
3. File CO State Tax - Married Filing Jointly 

Is this correct? or Are these filings not allowed as per the NY and CO tax rules?   Thanks

[KD6883]

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 ?

[KD6883]

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 ?

[ErnieS0]

@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.

[mmrevans]

When you are making the mock federal returns to file can you still file electronically to the state using these mock federal returns?

[DoninGA]

---

@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.

[mmrevans]

Thanks for the reply, as it will help me decide the right way to start my taxes!  Much Appreciated 

[areimer5]

My wife and I are in a similar situation. I worked in CT for part of the year and then FL for the rest of the year. She did not live in CT for any part of the year and does not work. Can I file MFJ for federal and MFS for CT?

[Woodworker006]

Same situation-I live and work in Indiana. My spouse lives and works in Florida. We own homes in both states. We plan to file MFJ. Can we file MFJ for Indiana and omit her Florida income (she only has FL income) since Florida does not have state income tax? Thank you for responding!

[GeorgeM777]

You may have to include your spouse's income because you may have to file a Indiana tax form IT-40PNR.  However, this does not mean that your spouse's FL income will be taxed by IN. 

The following information comes form the Indiana Department of Revenue website which can be accessed here Indiana Department of Revenue IT-40PNR Booklet

Form IT-40PNR for Part-Year and Full-Year Nonresidents

Use Form IT-40PNR if you (and/or your spouse, if married filing jointly):

• Were Indiana residents for less than a full-year or not at all, or

• Are filing jointly and one was a full-year Indiana resident and the other was not a full-year Indiana resident, and

• Do not qualify to file Form IT-40RNR.

Form IT-40RNR for Full-Year Residents of Reciprocal States

Use Form IT-40RNR if you (and your spouse, if married filing jointly) were:

• Full-year residents of Kentucky, Michigan, Ohio, Pennsylvania or Wisconsin, and

• The only type of income from Indiana was from wage, tip, salary or other compensation*.

*You are required to file Form IT-40PNR if you have any other kind of Indiana-source income.

Based on the above information, it would appear that you may not qualify to file Indiana Resident/Non-Resident return, and thus will need to file the Indiana Part-Year and Full-Year Non-Resident form.   

[amukh]

Hello everyone!

After I located this thread (thank God!) I'm relieved to find that we are in a similar situation too.

My wife and I both worked and stayed in New Jersey until June 2021. Thereafter, I continued working and stayed in NJ till the rest of 2021. My wife moved to Maryland in July 2021 and started working there, and is  still there at present. We also had a daughter born to us who lives with my wife. I make weekend trips as schedule permits.

I had a few doubts regarding the Federal and state tax filings in our situation.

1) We are planning to file Married filing Jointly(MFJ) for the Federal tax. I hope that is okay.

How do we go about the state taxes? I am a resident of NJ and my wife was a part year resident of both NJ and MD.

2) So I guess we are looking at three state returns: NJ only for me and part years for NJ and MD for wife. Is it possible to file such a return through the Turbotax Deluxe with State (PC download) version? 

3) So can we download an included state and pay to download another state? I am not sure about the cost.

4) How do we actually go about filing these state returns? I think we need to file as Married filing separately (MFS). I have only used the Turbotax online free edition till now(we both used to live in NJ) and would appreciate some help with the PC(download) method.

Edit: I was also looking up information and I'm not sure whether we have to file in the same status in either of NJ or MD as MFJ as we planned to use in federal returns. That could unfortunately cause a lot of tax liabilities in both states, considering each spouse didn't work in the other's state for the last 6 months. This is so confusing.

5) Lastly, is there a way to e-file these 3 different state returns? Or would they have to be paper only? I couldn't locate the charges to efile though. 

Any other suggestions are welcomed and appreciated.

Thank you for taking the time to read through my post.

[MarilynG1]

Yes, you can file as MFJ for your Federal return.

New Jersey requires that you file as MFJ if you filed as such on your Federal return (different states have different rules).

You will be able to indicate the dates your wife lived in NJ, and also be able to either adjust your Federal income (subtractions from NJ income) to not include her Maryland income OR get credit for tax paid to Maryland. 

She will need to file a Part-Year Maryland return as MFS.

Click this link for more info on Married Filing Separate States, since you did not live in MD at all.

As far as the cost to download/efile a second state, I believe it is $39.95.