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
My wife and I lived and worked in MD up until July 2016. We sold our home in MD in July and my wife moved to NC permanently while I remained in MD. We are still happily married and I commute to NC every other week. I am renting in MD. So, I have a W2 for employment in MD, but my wife is unemployed. We have no reported income in NC. How should I file?
If you are filing as married filing jointly with your spouse, you may want to file a part year MD and NC return. However, since no income was earned in NC, you may not be required to file a return for NC. I advise you to refer to the North Carolina Department of Revenue to determine your filing requirements.
am living and working in Austin, Texas but my wife is working in Maryland but working in DC. Every Year, we file tax jointly. I am losing a tremendous amount of money because of MD tax. I could benefit if I file tax as Texas resident because Texans are exempted from personal income tax. Should we file tax, as husband and wife, as MD residents? or can I file as Texas resident and my wife as MD resident but jointly? I am quite confused. any help would be appreciated.
Thank you
Hi Buze,
There are many married couples who face this dilemma. A typical way to go about filing taxes while still being able to take advantage of all benefits of being married is to file a joint federal tax return while then filing separate state tax returns. Keep in mind that you will still file as married on your state tax return just choosing the ‘married filing separately’ option. This tends to be more beneficial since you will each be taxed by one state on your own adjusted gross income as opposed to being taxed on a combined adjusted gross income by two states.
Hi, I need some advice on filling state returns. I work in Arizona while my wife works in California, temporary situation. I am thinking of filling separate state returns. Which is better, married filling joint for both states or married filling separately?
Hi Robert,
In your tax situation, it is common for a couple to file a joint federal return but separate state tax returns. It makes things a bit simpler since you will each take responsibility for your own state taxes. You will still receive the tax benefits of being married but you won’t be taxes (state-wise) on a combined income.
Hi, I have a question regarding this: I live in NYS and my husband lives in OH it is best for us to file MFJ for federal than to file separately. I lived in NYS all of 2015 and he lived in OH all of 2015 will MFS for state returns prevent both states to taxing all of our income in both states? If so, can I efile my federal MFJ return and then efile both OH and NY as MFS with Rapidtax?
Hi Alex,
You can definitely file a joint federal tax return with separate state tax returns. This is common for taxpayers in your situation. This will allow you to report your individual adjusted gross incomes instead of a combined AGI as you would need to with a joint tax return. You can do this with RapidTax as well! If you have any questions throughout the process, you can call or livechat our tax team.
My wife and I got married in June. I lived in Alabama all 12 months of 2015, she moved to Alabama from Maryland when we got married. She did not have any income in Alabama, but she did have some income in Maryland (until we got married). How would you suggest we file our state income?
Thank you,
Ben
Hi Ben,
Congratulations on tying the knot!
This actually happens more often than you may think. Since you are required to use the filing status that you qualify to be on the last day of the year on your tax return, you’ll each file as married. Since it will only be for this year, I suggest filing a joint federal tax return and separate state tax returns. When you file a joint return as married, you are taxed with a combined Adjusted Gross Income. Filing separate tax returns will help you to avoid that and further confusion. This will allow you to be independently responsible for your own income tax from each state.