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,
I like and work in TX but my wife just moved to CA for a job that will last 1 year. I asked my current (maybe former) tax accountant if we could file jointly but with separate state tax returns and they said it’s only possible if I don’t spend a single day in CA this year. Is this accurate information? It seems very unreasonable for a married couple to not visit each other for even 1 day so I am skeptical. Obviously filing jointly with separate state returns would be the best solution for us but I only want to do it if it’s legal. I do plan on visiting her for at least a few weeks out of the year.
Thanks!
Hi Brian,
As mentioned in the article, you are 100% able to file a joint federal tax return and separate state tax returns. In fact, your case is a realistic example of when many couples will do just that. I’m unsure of what your accountant was referring to; possibly a specific case? However, based on what you have mentioned above, this would most likely be most beneficial for you and your spouse (not to mention, less confusing).
Hi,
My wife resides and works in CA while I reside and work in OH, for all of 2014. We want to file taxes together. Do our states allow us to file joint federal return and separate state returns?
Hi Darshin,
You’re right, you can file a joint federal return but will be required to file separate state returns.
I lived in NY until April 2014. Now I am working in Virginia since April 2014, but my wife and kids are living in NY. My wife has no income for 2014; I provide them all supports. Could you please advise me about my tax filing?
Thanks.
Rejaul
Hi Karim,
This type of scenario can be a bit confusing so I will let you know of a few routes you could take.
One option would be for you and your spouse to file a joint federal return and separate state returns. With this option, you would be able to report all income earned on the federal return for you and your spouse. On the state returns, you would still report as married, just filing separately. This will avoid any confusion when it comes to states. Your wife would file a NY state resident return. You would file a part year resident return for NY and a part-year resident return for VA.
Another option would be to file a joint federal return and a joint NY return with a separate VA state return.
Hi,
I got married in Oct ’14. My husband lives in NJ (before & after). I live in GA finishing up my school. I work part time and he works fulltime in NJ. We have shown my husband’s permanent address in GA for legal documents and for joint bank accounts phone bills because he lives in a rental place and works as a contractor so its not a fixed resident.
We want to files taxes together, how can we do it ? Shall we do joint federal and separate state returns ? or Something different?
Hi H,
I suggest filing a joint federal tax return and separate state returns. This will avoid any confusion with state rules as well.
Hi my husband works and lives in Nevada, I moved to Idaho 10 months ago and do not work. Do we still file separate state tax forms? Thanks.
Hi Jana,
I suggest filing a joint federal tax return and separate state tax returns for this year.