Married and living in different states

[ELR_2023]

My husband and I got married in January 2023. We live in different states and have even after the marriage. We do not have any joint accounts on anything. Is it better to file joint or separate given this odd circumstance?

[lramkumar]

Hello ELR_2023

Assuming you don't hve dependents,  f you both lived separately in 2 different states,  you have the option to file married filing jointly for federal and married filing separately for the states,  You will be able to see the what if scenario on Turbo Tax desktop version to find out which option gives you the most benefit. 

Married filing jointly gives the best result tax wise,  but there are situations where you might benefit from Married filing separately.  It really depends on the income and tax bracket.  This is where the what if scenario on the Turbo tax desktop version comes into play.

Thank you 

[shirleyh88]

Hello ELR_2023,

Thank you for your question. I am happy to assist you.

Congratulations on your marriage!

You and your spouse can file a joint federal return. The address you choose to use on the federal return should belong to one of you who prefers to receive any mail from the IRS.

As for the state filing, every state is different. It depends on which state you live in. Some states allow you to file a joint return with your nonresident spouse, and in others you cannot do so. In addition, in some states may prefer a separate return for each spouse for state purposes.

Since both of you work and reside in different states, it can be in your best interest to file separate returns so you do not include your non-resident spouse’s income on your state return because both states may try to tax the same income.

I have attached an article that includes steps on how to file separate returns on TurboTax. It is best to use the TurboTax Desktop product because you will need to pay for one TurboTax product, but you can file up to five (5) returns.

https://ttlc.intuit.com/community/taxes/discussion/my-wife-and-i-worked-in-different-states-we-are-f...

Please let me know if this answers your questions, or if I can be of further assistance.

Thank you!

Shirleyh88

[ELR_2023]

Thank you for the insight. I live in Arizona and he lives in New Mexico. We got married in New Mexico. 

[shirleyh88]

Hi ELR_2023,

Thank you for providing both of your respective states.

Arizona:

It looks like AZ will allow you to file married filing joint (MFJ) for your federal return and married filing separate (MFS) on the state return. However, since AZ is a community property state, filing a separate return requires you to reflect one-half of the community income from all sources in addition to any separate income.

Below is a link from the AZ Department of Revenue that provides information on Married Filing Separate Return:

https://azdor.gov/individuals#:~:text=You%20may%20file%20a%20separate,is%20a%20community%20property%....

New Mexico:

However, for NM, if married taxpayers file separate federal returns, they must file separate returns for their NM state returns as well. Please refer to the link below:

https://answerconnect.cch.com/document/jnm0109013e2c848e3bfc/state/explanations/new-mexico/married-f...

Due to the different rules for both AZ and NM, it would be in your best interest to file married filing separately for both federal and state in this case. Please refer to the article below for filing MFS in AZ. Please keep in mind that the personal exemption amounts, and standard deduction amounts in this article were for 2017 so they are no longer applicable in 2023.

https://ttlc.intuit.com/community/taxes/discussion/if-i-file-married-but-separate-in-arizona-what-ha...

Please let me know if this answers your questions, or if I can be of further assistance.

Thank you!

Shirleyh88

[golfman23]

I am in a similar situation. We moved to Florida 2 years ago and I am a Florida resident, my employer has my Florida address but my wife is an Illinois resident and her employer uses the Illinois address. She has to file an Illinois return while I do not. What’s most applicable to our situation? Thank you. 

[MonikaK1]

In the situation you described, you could choose to file a joint Federal return and your spouse could file a separate Illinois return.

According to the Illinois Department of Revenue:

If you file a joint federal return and one spouse is a full-year Illinois resident while the other is a part-year resident or a nonresident (e.g., military personnel), you may choose to file "married filing separately." Do not recalculate any items on your federal return.

Instead, you must divide each item of income and deduction shown on your joint federal return between your separate Illinois returns following the Allocation Worksheet in the Form IL-1040 Instructions.

Each state has its own rules regarding this topic. For example, Arizona allows couples to file separately even if they filed a joint federal return, whereas Colorado does not. California doesn't allow it either, with the exception of active-duty military and certain nonresidents. 

You can use TurboTax Online to file separate state returns, but we recommend you use the TurboTax Desktop software version to do this because you'll only need to pay for one TurboTax product (you can file up to five returns).

See this help article for more information.

[gstepp22]

How about West Virginia and Virginia?

My wife recently bought a home in Virginia to be closer to work. She will be a resident of Virginia but I will remain living in West Virginia as a WV resident. We both work in Virginia.

[JotikaT2]

You will be able to file a married filing joint return for federal purposes.  But depending upon your situation based upon the following information, it does appear you would need to file as married filing separately in West Virginia and your spouse would file married filing separately within Virginia.

West Virginia and Virginia are reciprocal states.  This means the wages earned in the state you work in are treated as if they are earned within your state of residence.  For you, since you reside in West Virginia but work in Virginia, assuming your employer has the W-220 exemption form on file, you will only be required to file a West Virginia state tax return.

As for your spouse, it sounds like she has established her domicile in Virginia by purchasing a home.  If her intent is always to return to the home in Virginia, then she would be considered to be a domiciliary resident of Virginia.  However, she would be considered an actual resident of Virginia if she was within the state for more than 183 days during the taxable year.  Please see this link for more details.

Virginia will not allow you to file a married filing joint return since you would be considered a nonresident while your spouse would potentially be considered a resident.  The only way you could file joinly in Virginia is if you both elect to be treated as Virginia residents.

West Virginia will treat you as a resident if you maintained a physical presence for more than 183 days of the taxable year.  If one spouse changes their state of residency during the year, you will not be able to file a joint return within West Virginia.  You will need to file as married filing separately for West Virginia.  Please see this link for more details.