Spouse worked in another state for 2 months - how to file

[Riant99]

My spouse worked in different state for only 2 months. We both worked in the same STATE1 most of the year but only she moved and worked in a different STATE2 for new employer from July-Aug 2019 while I continued working in state1. In Aug she moved back to STATE1 with a new employer.

How should I file the tax. MFJ , MFS, Part-Year state, non-residence state ?

Appreciate your help. 

[SusanY1]

It really depends on which state as some have part-year resident status, and some only have non-resident status. A few have both. 

In a few states changing the filing status works best, in others it's not an option.  If you will post again with the specific states you are dealing with, we can give a better answer! 

[Riant99]

Thanks for the response @SusanY1 . Utah is full time state and spouse worked in Virginia for 2 months ( July, Aug ) for Virginia employer after which moved back to Utah with a different employer.

[SusanY1]

Thank you for that additional information.  You will file a Utah resident return, of course, but first prepare a Virginia Part-Year resident return and use the filing status Married Filing Separately.  

Virginia is unique in that it is one of a handful of states with a filing status for "married filing a combined separate return". This status will make it a little easier to report only the income earned in Virginia on that return.

After you have completed your Virginia return, the Utah return should be fairly seamless. However, be sure to note the amount of income and tax paid in Virginia in case the Utah interview asks those questions. 

You will file your Utah return with the Married Filing Jointly (MFJ) filing status. 

[AB0007]

Thank you for insight!

In my case, i worked and stayed in RI for all 2024. My spouse worked only from July to Sep (3 months) in 2024 in different state NJ then moved back to RI. Can you suggest how should I file? 

[Vanessa A]

If you are filing a joint federal return, then you can file a separate state return for NJ and a Joint for RI.

For NJ, you can file as Married Filing Separately since you were a non-resident and had no income for NJ.  You would only report her income on this return.

For RI,  if you are filing a joint federal return, you would have to file a joint RI return.  Since your spouse is filing an NJ return as a non-resident, that will have to be filed first.  After that is filed, you can claim a credit for the taxes paid on your RI return for the taxes paid to NJ. RI will tax all income from all sources as your resident state.  So to avoid double taxation, you would claim a credit for the Non-Resident return. 

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

Multiple States

if you are filing separate federal returns, then you would just file separate state returns as well, reporting the income you each received on your own return. 

[AB0007]

Thank you so much Vanessa! That makes sense.

Also, does turbotax allow me to select this in web version. As I don't see that option, when changing residency for NJ, it shows my name on return instead of my spouse. Am I doing something wrong? 

[Vanessa A]

Yes. You can do it on the online version, but it is suggested that it is done on the desktop version as you do have to create an additional mock federal return to do this.  Here are the instructions on how to do this on the web version. How do I prepare a joint federal return and separate state returns?

 

[AB0007]

Also, can I file as a married file jointly non resident on NJ return also. Is it ok to do that?

As turbotax web does not show me to when doing state to chose separate filing status for my wife. And I was speaking to turbotax advisor and they said I should be fine doing Married filing jointly also as I am specificying what was earned in NJ out of total income. 

So I am still confused what is the right way to do it and how to do it in turbotax web. 

[Vanessa A]

Yes.  You can file a NJ Married Filing Jointly Non-Resident return that includes both of you on the return, then make an adjustment to income removing your income that was not earned in the state and her income that was not earned in the state when asked to do so in the interview questions for NJ.

Married/CU couples both nonresidents: Only one has New Jersey income If you and your spouse were nonresidents for the entire tax year, and only one of you has income from New Jersey sources, the spouse with income from New Jersey may file a nonresident return using the Married/Civil Union Filing Separately status. The spouse may also use that status, even if you filed a joint federal return. You have the option of filing a joint nonresident return, but you will have to combine your income and deductions

[AB0007]

"You have the option of filing a joint nonresident return, but you will have to combine your income and deductions"

Yes, I saw this line in NJ state GIT document also. Does it put me to disadvantage in any way than filing separately?

[ThomasM125]

Typically your deductions and credits may be limited if you file separately, but on the other hand your income is typically less. You would have to try it both ways to see which one is best.

@AB0007