married filing jointly different state residencies PA and DC

[DavidC7]

Hi my wife and I would like to file jointly, but we have different state residencies.  I have DC residence and she has PA residence (her work and taxes).  We both live in DC.

I understand that we can file our Federal return "married filing jointly" but it's not clear if we can file separate returns for each of our states (DC and PA).

[DianeW777]

Yes, you can file separate returns for your state returns. Both the Pennsylvania (PA) return and the District of Columbia (DC) allow you to choose to file married filing jointly or married filing separately.

• DC Instructions (page 😎
• PA Instructions 

Only one state return can be filed electronically, the other must be mailed. 

• How do I prepare a joint federal and separate state returns?

[TomD8]

"We both live in DC."

Are you sure you're not both DC residents for tax purposes?  See "Do I have to file a DC income tax return?" in this DC tax reference:

https://otr.cfo.dc.gov/page/individual-income-tax-filing-faqs#:~:text=(A%20resident%20is%20an%20indi...

[BillM223]

I, too,, wonder about "we both live in DC". Is your spouse an actual resident of PA? Does your spouse have a house and sleep in it in PA?

PA says 

A person is considered a statutory resident of PA unless:

• the person spends more than 181 days (midnight to midnight) of the tax year outside PA; or
• the person has no permanent abode in PA for any part of the tax year.

Sounds like your spouse might not be either an actual or statutory resident of PA.

[DavidC7]

Thanks.  My wife has a friend she stays with while teaching in PA.  For voting, mailing address she uses the PA address.  We have a home here in DC.  I'm a resident and vote here.  She lives here except a few days during the week during college semesters, when she travels back to PA for a few days.  Her W-2 and taxes are all PA.  From reading the PA tax info, her paying taxes in PA constitute residence.

[DianeW777]

It depends on all facts and circumstances.  The Pennsylvania (PA) tax system is a flat rate of tax whether resident or nonresident. Paying taxes alone does not constitute residence, however when put together with voting, mailing address and number of days in Pennsylvania (PA) would all be considered in the decision of residency.  Either way the PA return must be filed. 

If your wife was a DC resident  she would be allowed to take a credit for taxes paid to another state. This is only allowed if you are filing a resident state for DC and a nonresident state for PA. You can review the residency requirements for DC as noted in the link provided by @TomD8 and  PA by @BillM223.  If you decide your wife is actually a DC resident, tax all of her income to DC and use the credit for taxes paid to another state below.

• DC Credit for Taxes Paid to Another State

Credit for taxes paid to another state is allowed by a resident state when the same income is being taxed to another state.  Your resident state does not want you to pay tax twice on the same income. The credit that is allowed will be the lesser of:

1. the tax liability actually charged by the nonresident state, OR
2. the tax liability that would have been charged by your resident state

@DavidC7