Married filling both lived in two different states before marriage in DMV area

[stefanz]

Hi Experts! 

We got married last year in December, and we are not sure if we should file jointly or separately for Federal and states. 

My spouse lived in Virginia first then moved to Maryland, and then DC in October. I lived in Virginia before and moved to DC in October (so only 3 months living in DC)

In this case, I hope we can file Federal jointly, but have no clue what should we do for states. 

Thank you for your help in advance!

[SabrinaD2]

Navigating your tax filings after a December marriage, especially with multiple state residencies, involves several considerations. Here's a breakdown:

Federal Taxes:

Filing as Married Filing Jointly (MFJ) is generally advantageous. Benefits include:

• For the 2024 tax year, the Standard Deduction for MFJ is $29,200. Single filers get $14,600.
• Access to Tax Credits: Joint filers can qualify for various tax credits, such as:
  • Earned Income Tax Credit (EITC)
  • American Opportunity and Lifetime Learning Education Tax Credits
  • Child and Dependent Care Credit
  • Adoption Credit

Favorable Tax Brackets: Filing jointly often results in lower tax rates, especially if there's a significant income disparity between spouses.

For additional information click here.

Here's an overview of the implications in Virginia, Maryland, and the District of Columbia (DC), with references to official state resources:

• Vrginia generally requires taxpayers to use the same filing status as on their federal return. See Virginia Tax.
• Maryland: Married couples who file joint federal returns may file separate Maryland returns under certain circumstances.  See Maryland Taxes.
• District of Columbia (DC): DC requires that taxpayers use the same filing status as on their federal return. See DC Tax.

Considerations: 

Married Filing Jointly (MFJ):

• Advantages: Often results in a higher Standard Deduction and eligibility for various tax credits.
• Disadvantages: Both spouses are jointly liable for any tax due.

Married Filing Separately (MFS):

• Advantages: May be beneficial if one spouse has significant medical expenses or miscellaneous deductions subject to adjusted gross income limits.
• Disadvantages: Typically results in a higher tax rate and disqualification from certain credits

Helpful Links:

Office of Tax and Revenue

Maryland Taxes

Virginia Tax

Taxpayer Advocate Service - The Tax Ramifications of Tying the Knot.

[stefanz]

Hi Sabrina, 

Thank you for your reply! Just some follow-up questions after looking up the articles you shared:

1. For MD, what does it mean by "had different tax periods"? I never lived in MD, only my spouse lived there for a few months. Can we file states separately if we filed joint federal returns?

Married couples who filed joint federal returns but had different tax periods

Joint return - Filing Status 2  OR Married filing separately - Filing Status 3

2. For DC, we both moved to DC in October, but only I have DC income, in this case, am I even considered a DC resident? Can we file joint federal return in our situation and separate filing for DC tax? Saw someone mentioned that filing separate is better for DC tax

https://www.reddit.com/r/washingtondc/comments/1azmvo7/psa_taxes_if_married/# 

Thank you in advance! 

[AmyC]

1. Not everybody uses a calendar year.

2. Yes, part- year. You were both VA residents for part of the year. You were both DC residents  for part of the year. When your wife moved to MD briefly, I sincerely doubt that she took the time to establish a residence, move car insurance, get a new license, etc -but maybe she did. The question becomes, was she passing through as a non-resident or was she actually a resident.

Filing MFJ federal with the same as part year resident for VA and DC. Filing a MD nonresident return, either filing status is fine and MFJ would keep it simple.

3. No. DC does require the same filing status as federal, see filing status here 

The federal and states do share information. If a state requires the same fling as federal, you will eventually get caught.