Married filing joint - State tax

[Henley1989 10]

Hi,

I am almost done filing m wifes taxes on turbo tax and im stuck at the last bit.

I have done her W-2 and all the relevant deduction/exclusions, including my own foreign income exclusion as I was in the UK the entire tax year.

However, I just completed the State tax (NJ) and its telling me we owe almost 1000 dollars. What it seems to be doing is including my income from the UK as tax therefore I have to pay State tax. I dont think this should be the case, what I need it to do is just look at my wifes state tax and if anything, she gets a refund.

Any ideas how to do this? Its only the state tax that is giving me issues. I cant figure out how to get it to either remove my foreign income money or just be done for her.

Any help would be appreciated.

Thanks!

[rutabaga 209]

Are you even sure you're eligible to file a joint state return if one of you hasn't lived in the state at all? Unlike at the federal level where you can MFJ with a non-resident spouse by treating them as a resident, you generally can't do that at the state level (I'm also assuming she's the USC here).

Edited March 27, 2016 by rutabaga

[Henley1989 10]

Are you even sure you're eligible to file a joint state return if one of you hasn't lived in the state at all? Unlike at the federal level where you can MFJ with a non-resident spouse by treating them as a resident, you generally can't do that at the state level (I'm also assuming she's the USC here).

Ye she is the USC here and im the middle of AOS phase. SHe has lived and worked in the state all tax year, so im just assuming she files the state tax to try get a refund?

How do I know if she needs to file state tax? I was just going along with it...

[rutabaga 209]

No, no, all I'm saying is are you sure you two can file a joint state return if one of you hasn't lived in the state at all? For example, we're filing MFJ at the federal level for 2015, but my wife is filing MFS at the state level since we can't do a MFJ for WV state taxes if one of us was a resident of WV and the other a non-resident (or even part year resident) of WV for the year in question (I don't know what the situation in your state is since state tax codes vary in this regard).

Edited March 27, 2016 by rutabaga

[Henley1989 10]

No, no, all I'm saying is are you sure you two can file a joint state return if one of you hasn't lived in the state at all? For example, we're filing MFJ at the federal level for 2015, but my wife is filing MFS at the state level since we can't do a MFJ for WV state taxes if I hadn't lived in WV at all during the year we're filing for (I don't know what the situation in your state is since state tax codes vary in this regard).

Oh I see. Well I dont really know how to file it separately... Its all in the same program so I just go in and it takes all the info from the federal level.

Maybe I dont use turbo tax for the state tax and do hers another way?

[rutabaga 209]

If you have the download version of the software then you can easily prepare two federal returns -- one MFJ and one where your wife would be MFS and then make a state return based off the second one and when you file, you file the federal MFJ version and the state MFS version. Or you could just do the state one (or both) manually.

Edited March 27, 2016 by rutabaga

[Henley1989 10]

If you have the download version of the software then you can easily prepare two federal returns -- one MFJ and one where your wife would be MFS and then make a state return based off the second one and when you file, you file the federal MFJ version and the state MFS version. Or you could just do the state one (or both) manually.

I just found an option to file the state with a different status as federal. If I change to MFS or SINGLE, the amount she owes shoots up dramatically. Will try messing around with it. She shouldnt owe anything, rather get a refund

[rutabaga 209]

Yeah, look into it and see what the best status is (also, check with your state's revenue department if you can file MFJ or if she has to file MFS for the state return, it's usually somewhere on their website even). Also, if you two were married at the end of last year, her filing status can be MFJ or MFS, but not single.

[Henley1989 10]

Ok so it has to be MFS I guess. That makes her owe a lot more. Its still calculating my excluded income in there.. Perhaps She can file somewhere else and I just use Turbo Tax for the Federal return

[rutabaga 209]

Like I said, to get the calculation right you may need to start from scratch with her MFS return and then just not file the federal MFS version (this way you just won't input your income at all).

Or you can do the state MFS elsewhere/manually.

Edited March 27, 2016 by rutabaga

[MariaR323 199]

Be very careful with what you're trying to do. It's not just a matter of "choosing" what you want... it's choosing what you're "supposed" to choose.

You can get audited right away if you're not filing the correct way. Some states require Fed return confirmation, others don't. Some states, like CA for example, require you file the same filing status as Fed, others don't.

You need to find out first if your state conforms to the Fed for the MFJ election. If they don't, your wife most likely will need to file MFS.

I stress please verify what filing status you are supposed to use for your particular state.

Edited March 27, 2016 by MariaR323

[Henley1989 10]

Like I said, to get the calculation right you may need to start from scratch with her MFS return and then just not file the federal MFS version (this way you just won't input your income at all).

Or you can do the state MFS elsewhere/manually.

I tried starting from scratch and it still doesnt lower it. The federal is all done as MFJ to get the most benefit. Im thinking maybe try to file her State elsewhere as MFS as I think NJ offer you an online way to do it

[rutabaga 209]

Be very careful with what you're trying to do. It's not just a matter of "choosing" what you want... it's choosing what you're "supposed" to choose.

You can get audited right away if you're not filing the correct way. Some states require Fed return confirmation, others don't. Some states, like CA for example, require you file the same filing status as Fed, others don't.

You need to find out first if your state conforms to the Fed for the MFJ election. If they don't, your wife most likely will need to file MFS.

I stress please verify what filing status you are supposed to use for your particular state.

Yes, definitely do check your state's tax code.

P.S. Btw, even in CA there's an exception if one of the spouses was a non-resident for the whole year and had no CA source income (though, in CA, unlike in WV, it seems you can still choose to do a MFJ even in that case). https://www.ftb.ca.gov/individuals/Filing_status_information.shtml

Edited March 27, 2016 by rutabaga

[MariaR323 199]

Yes, definitely do check your state's tax code.

P.S. Btw, even in CA there's an exception if one of the spouses was a non-resident for the whole year and had no CA source income (though, in CA, unlike in WV, it seems you can still choose to do a MFJ even in that case). https://www.ftb.ca.gov/individuals/Filing_status_information.shtml

Yes, I know... just like for RDP as well, but for simplicity sake for the OP I didn't go into too much detail. I'm a registered tax preparer here in CA and I've done some extensive research but only as it applies to CA of course lol

[Henley1989 10]

Be very careful with what you're trying to do. It's not just a matter of "choosing" what you want... it's choosing what you're "supposed" to choose.

You can get audited right away if you're not filing the correct way. Some states require Fed return confirmation, others don't. Some states, like CA for example, require you file the same filing status as Fed, others don't.

You need to find out first if your state conforms to the Fed for the MFJ election. If they don't, your wife most likely will need to file MFS.

I stress please verify what filing status you are supposed to use for your particular state.

hmmm ok. I guess I have to find out what I need to do. Will research the web