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 does not work. We live together in IN for the first 3 months during which I worked. For the next 9 months, I moved to MO to work. We filed jointly for IRS. What about State taxes?
Hi Henry,
You have the option to either file joint state returns or separately. If you file joint returns, it is important that you know you are required to use your combined Adjusted Gross Income. For this reason, it is common for married couples in your tax position to file joint federal returns but separate state returns.
I am married but have not got legally separated yet. I live in ca he lives in Al. for the past three years I don’t know how to get a hold of him or any of his information do i file married filing separately
Hi Janet,
That is correct. In this type of tax situation, the best alternative is to file married separately. If you are not in contact with each other, then he would not be filing a joint tax return without any of your income information to report either.
I have another question regarding my wife’s educational expenses. My wife is a medical student of one of the school of medicine in Dominica (Caribbean country) and also doing her Master’s degree online in one of the Private University at Minneapolis, Minnesota. Please be advice that she is an American Citizen.
The University of Chicago provide her Form 1098-T where the Dominica Medical School did not provide us the Form 1098-T. We have asked them to provide us this form and they send us all of those tuition invoices receipt copies instead and suggested us to use those invoices receipt against our tax return if we required to file a tax.
Please NOTE that I am paying all of her medical educational expenses including tuition, books, supplies, and equipment that a student needs for course of study.
Please see below details both school’s tuition cost separately.
School of Medicine (Dominica):
Total tuition cost 2015: $30,000.00
Books and other expenses: $3000.00
Did not receive Form 1098-T
State University (Minnesota):
Total tuition cost 2015: $12,000.00
Books and other expenses: $1000.00
Received Form 1098-T
We will be filing Form 1040, Married Jointly and also we will use Form 8863 Education Credits
(American Opportunity and Lifetime Learning Credits)
I am just wondering if it will do any help (get more refund) if we include both school’s tuition fees and expenses? Will our refund will be same if we include both school or shows only one school tuition fees and expenses? Please suggest.
I am now a Florida resident as of Dec 27 2015, my wife remains a Mass resident, do we have to file separately or can we file jointly?
Hi Al,
You qualify to file a joint return. However, it may be more beneficial for you to file a joint federal tax return and separate state tax returns. This is common in a situation like your own. Since you are now a Florida state resident, you are not subject to income tax whereas your wife is. By filing a joint state return, you would be holding responsibility for that Massachusetts state tax on her income.
My husband moved to Utah and I moved to Pennsylvania – both for the full year. I thought that we would file a joint federal return, and then he file married filing separately in Utah and I file married filing separately in PA. But, Utah states that if a spouse is a resident of Utah, then both are residents and both have to file in Utah and pay taxes in Utah. Utah taxes are higher than PA’s taxes. Do I really need to be penalized because my husband wants to live in a higher taxed state?
Hi Heather,
Although states have their own guidelines, if you are a nonresident spouse and have no taxable income from Utah, you are not required to file a Utah return. Your husband may file a married filing separate Utah return using the Special Instructions on page 4.