Tax Year Prior to 2020: Married couple living in different states part of the year

[joannsacco]

At the end of the last year my wife moved from NY to VA to start a job.  We don't know how we should file, jointly, married but filing separately.  And our current residences are different.  Can we file jointly?

[DianeW]

Yes.  You can definitely file married filing jointly on the federal return.  Review the information below and then try the state returns both ways to determine the best filing status for both New York and Virginia.

New York:  Generally you would use the same filing status that is used on the federal return.  There are exceptions.

The only exceptions to this rule apply to married individuals who file a joint federal return and:

• one spouse is a New York State resident and the other is a nonresident or part-year resident. In this case you must either:
  • file separate New York State returns using filing status 3; or
  • file jointly, as if you both were New York State residents, using filing status 2.

Virginia:  Choosing the correct filing status is very important. The filing status used on your federal return will generally determine the status that you use on your state form. Married filers should keep in mind that filing status depends partially on residency status. As a general rule, a resident and a nonresident cannot file a joint or combined Virginia return. This is particularly important for members of the military to consider when choosing a filing status. Please review the filing status information carefully.

• Choosing filing status 2 (married filing joint) or 4 (married filing a separate return) - whichever is best for you.
• This link will provide helpful information - VA Filing Status Information
  

[KnnNike]

Two related questions:

1. Are you ever *required* to file Married Filing Separately? In our [similar] case, the Married Filing Jointly nets us a much larger refund. I was always under the impression that you can always do it either way, just pick the method that gets you the largest refund.

2. Can you file Married Filing Jointly on one state return and Married Filing Separately on another state return? Or if State A requires you to file Married Filing Separately, does that mean you have to do this for State B as well?

[WKins2]

You can claim either married filing jointly or married filing separately, generally though, most taxpayers come out better claiming married filing jointly. As for claiming married filing jointly for one state and then married filing separately for another state, most states require you to file as you did on your federal return. 

Meaning if you file as married filing jointly on the federal return, you will be required to file as married filing jointly on the state return. You will need to research what the state requires by visiting their department of revenue website. 

[KnnNike]

In my case, I lived in Michigan all year, and my wife moved from Virginia to Michigan in November. The Turbotax software will not let me submit a married filing jointly return for Virginia - it's saying that we *have* to file Married Filing Separate for the Virginia state return. So I think I got this:

- File federal return Married Filing Jointly

- File Michigan return Married Filing Jointly

- File Virginia return Married Filing Separate (but only my wife files a Virginia return)

Does this sound right?

[RobertG]

Yes, but be sure to allocate her Virginia income to Virginia on the Michigan return.

You should never have to pay tax to two States on the same income. 

@KnnNike

[KnnNike]

Yup, that part I got, there's a place on the Married Filing Jointly (MFJ) Michigan return for that in Turbotax. Thanks!

I think my initial confusion comes from this article that Turbotax links to inside the software (when it told me that we had to file MFS in Virginia):

https://ttlc.intuit.com/community/using-turbotax/help/how-do-i-prepare-a-joint-federal-return-and-se...

This makes it sound like all state returns (including mine) need to be MFS, it doesn't appear to cover the scenario of one state return being MFJ and another state return being MFS.

[DMarkM1]

Understand  This really depends on the states involved.  Many will only allow you to file with same status as you federal return.  Others will allow you to choose (VA).  

[KnnNike]

"Others will allow you to choose (VA)."

Well, I'm not sure that's quite accurate either, unless it's a limitation of Turbotax. Like I said in an earlier post, TurboTax refused to let me proceed with MFJ in Virginia; the software said that we *had* to file MFS...literally, all other menu options disappear at the point that it makes that decision, the only option is to go back and delete the Virginia return if you want to file MFJ.

Looking on the VA treasurer's website, it looks like MFS is strongly encourage in our scenario, but I found it weird that TurboTax wouldn't even give us the option to proceed with MFJ in that state.

[KrisD15]

Are you filing a second state as well?