State taxes for couples working from another state

Forum|Forum|4 years ago
April 6, 2022
7 replies
55 views

Me and My wife live in Washington for full year. Husband (me) works for organization in Washington - so no state taxes. Wife has a work state in California but stays in Washington. Never will set a foot in California for entire year. Her employer does California tax witholding where as domicile is Washigton.

Question : For Federal taxes - State does not matter- I believe we can file as Married filing jointly - no issues there , right?

Question - Does wife really owe any California Taxes since Domicile is Washington and we can get a full refund back ?
or If she owes - Can we still file as California Married with mine as zero income and wife income in California or would my entire income in Washington get into account if filing as Married for California ?

AmyC

Level 15

Since the wife did not work in CA, you want to file a nonresident return to claim a refund of the taxes taken. CA no longer taxes income earned in CA without working in CA.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

Mj94Author

Level 2

Thank you @AmyC for response. My W2 I believe carries domicile address ( home address) which is Washington.

Q1 - What would my spouse return look like - filing as single person - non resident return - zero income ?and that would trigger Calofirnia government to refund taxes - is it? (what about W2's income not matching)

Q2- Federal can still be file as MFJ ,right - they dont care about this states thing - right ?

AmyC

Level 15

A1. You can file both federal and state as MFJ. The CA return will have zero income, full refund since no work was done in CA.

A2. Since your return shows no work in CA, CA should issue a full refund.

A3. Since the w2 shows CA income, the state may send you a letter stating you owe taxes. You reply that your wife never worked in CA, only from home in WA. A letter from the employer would be great, if that happens.

A4. You are correct, the federal does not care how you file the state.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"