How would a married couple living together but working in separate states file returns

[frosty08]

Hi, my wife and I live in Delaware, but I work in Pennsylvania and my wife works in Delaware.

How should we file for Pennsylvania and Delaware.

thank you

[Carl]

Where one works has no bearing on your filing status options. For a married couple, the best way to file is married filing joint. Where each spouse works doesn't matter.

[frosty08]

Thank you for your answer.  I wonder if TurboTax will know that it needs to exclude DE income in PA tax.

[Carl]

TTX deals with multiple state returns just fine actually. But it's *important* that you do the resident state tax return last. Do not even start the resident state return, until after you have completed all non-resident state returns. That way the program can correctly take into account any reciprical tax agreements that may exist between your resident state, and all non-resident states so you're not double-taxed on the income from the non-resident states.

It's also important to read the small print, so you do not incorrectly include your resident state income in the non-resident state income. (I can't stress reading the small print enough, people still tend to not pay attention to details.)