If your spouse moved from a different state, you might be unsure how to file your state taxes.
“In 2013 I was a full-year resident of New York State and got a W-2 in NY. However, my wife was a part-year resident of NY (the other state being Ohio) and got two W-2s, one from NY and one from OH. So for our NY State return are we full-year residents or not?”
You may find yourself in a situation like the example above. If so, the first important thing all married couples should note before they try to deal with a complicated state tax situation is that they can actually file separate state tax returns, even if they file a joint federal return.
Filing Jointly vs. Filing Separately
Most married couples will opt to file their federal taxes together, using the married filing jointly filing status, because it provides the greatest benefit. It’s only advantageous to use the married filing separately status in very limited situations.
Even though it makes sense to file a joint federal return, if your state situation is complicated enough, it may make sense to file separate state returns.
Take the example listed above; the man’s situation is pretty simple- he was a resident of NY for all of 2013. It’s pretty clear that he has to file a NY resident return. This will tax him on all of his income for the entire year, no matter where it was earned.
His wife’s situation is more complex because halfway through the year she moved from OH to NY. This means that she needs to file an OH part-year resident return and then a NY part-year resident return.
Her OH part-year resident return will tax her on all of her income (no matter where it was earned) for that portion of the year that she was a permanent resident of OH. Her NY part-year resident return will tax her on all of her income (no matter where it was earned) for the portion of the year that she was a permanent resident of NY.
Some taxpayers may opt to go ahead and file a joint return even though one spouse was a part-year resident. It’s certainly more convenient, and if you moved early in the year, it probably won’t end up making that much of a difference. Plus it could actually end up saving you money on tax preparation fees.
Phew! That’s a lot of state tax information for one couple.
For more information about the supremely complicated world of state taxes, check out some of our other blog posts:
State Income Tax: Living in One State, Working in Another
Filing Taxes in Two Different States – What You Need to Know
Photo via Graham Fletcher on Flickr
Hi,
My husband and I got married July 2014, he has his residence in OR and I have mine in WA. He works in OR and has to pay state tax. I work in WA and have no state tax. We filed our federal jointly, however the OR form wants to tax my wages. Is there a form for this situation so I don’t have to pay OR?
Hi Angie,
You can file a joint federal return and separate state returns.
I live and work in Mass and my wife lives and works in PA, how should we file taxes?
Hi John,
To avoid confusion, I would suggest filing a joint federal tax return and filing separate state tax returns.
My wife and I lived and worked in GA for the most part of 2014. My wife moved to NC to live and work, and I moved to TX to live and work. We’d like to file federal income tax in married filing jointly status. What should I do for the state income tax returns?
Hi Jon,
You can file jointly for the federal return and married filing separately for the state returns to avoid confusion.
How about GA state income tax? Should we file married filing jointly (we were together in GA for the majority of 2014)? Thanks!
Is it best when doing our taxes to file married filing separately when married but live in separate states.. My husband lives and works in MA and i live and work in TX. Unfortunately for us we will be living in separate states for another 3 years until our kids turn 18.
Hi Maglout,
To avoid confusion and error, I suggest filing your federal return jointly and state returns separately.
How do I figure out my spouse’s AGI when we did federal MFJ? MA state taxes require it. thanks.
Hi Catherine,
This can seem a bit tricky. When filing as married filing jointly, you are seen as one entity to the IRS. Therefore, you will enter the same AGI for your spouse that you did for yourself. For example, if your AGI is $23,000 then your spouse’s AGI is $23,000.
Catherine-
I have the same question this year. Did you resolve this question of reporting AGI to Massachusetts?
Hi Phil,
If you are filing a joint tax return with your spouse, you both will share tax responsibility. This being the case, you will enter the same AGI for your spouse that you did for yourself.
Hi.
I am unsure on how to file taxes if i have been married for a year, but my husband is stationed in CA and I am living in AZ. I don’t work but I am a full time student.
Hi Janet,
To avoid confusion for this year, you could always file your federal return with a joint status and your state returns with a separate filing status.