Should we file MFJ or MFS if we live in two separate states, Tennessee and Arkansas

[michelleq841]

I live and work in Tennessee and my husband lives and works in Arkansas.  Should we file MFJ or MFS?  Do I have to file AR state tax?  

We also, want to start contributing to a Roth IRA, but have heard that you can't contribute if we file MFS?  Does it matter if it's roth or traditional?

[SundayInSalem]

Arkansas does not require the same filing status as federal so you can file a joint federal income tax return and a separate Arkansas return.

A separate Arkansas return should save you money because only your income will be taxed.

Tennessee does not have a state income tax.

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

Couples filing separate can contribute to a Roth IRA. The income threshold for 2022 for single, head of household, or married filing separate filers who did not live with their spouse at any time during the year is $144,000 (the phaseout begins at $129,000). If you file joint, the income limit is $214,000 (the phaseout begins at $204,000).

Amount of Roth IRA Contributions That You Can Make for 2022

[PoojaT27]

Hello,

Thank you for participating. Great questions.

You can file MFJ for Federal and MFS for the state will be the best option. Tennessee does not have state income tax so you will not need to file a return for Tennessee.  Your husband can file a MFS return for Arkansas.

You can contribute to Roth IRA even if you file MFS as long as your modified adjusted gross income as MFS filer does not exceed $144,000 for the year 2022. Versus if you file MFJ, then you can contribute to Roth IRA as long as your modified adjusted gross income does not exceed $214,000. 

Amount of Roth IRA Contributions That You Can Make for 2022