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Spouse in different state - Tax effect

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blueman

Junior Member
What is the name of your state? MN & NY

My wife and I are currently domiciled in different states. I am in MN due to employment. This is considered our home. Spouse is in NY for college study for 3 years. I spend most of my time in MN and she spends most of her time in NY. It is also advantageous for her to be a NY resident as it gives her more opportunities for financial assistance with college (since she is in NY)

My question is - how does this affect us for tax purposes? Can we still file a joint federal tax return? How would it work with state taxes and tax returns??

I have W2 employment in MN and we have a small business registered in NY which makes moderate income.

Any advice appreciated.

Blueman
 


LdiJ

LdiJ

Senior Member
blueman said:
What is the name of your state? MN & NY

My wife and I are currently domiciled in different states. I am in MN due to employment. This is considered our home. Spouse is in NY for college study for 3 years. I spend most of my time in MN and she spends most of her time in NY. It is also advantageous for her to be a NY resident as it gives her more opportunities for financial assistance with college (since she is in NY)

My question is - how does this affect us for tax purposes? Can we still file a joint federal tax return? How would it work with state taxes and tax returns??

I have W2 employment in MN and we have a small business registered in NY which makes moderate income.

Any advice appreciated.

Yes, you can file a joint return. You will have to file both MN and NY state tax returns. She will be an NY resident for tax purposes, and you will be an MN resident for tax purposes.


Blueman
Click to expand...
The state tax returns are going to be a bit complicated....I would strongly recommend that you use a tax professional who has experience in filing multi-state returns in these kinds of circumstances. That means that if you use one of the major national tax companies, you want a office that stays open all year long, because they tend to have the most experienced people. Smaller local companies that stay open all year long also tend to have alot of experienced people.
 
B

blueman

Junior Member
Thanks. I talked with a CPA briefly and the dual-state returns filing jointly is really messy.

If I forget about the potential (student-related) benefits of being a NY resident, could I just call my wife a MN resident for tax purposes?? She is only in NY for college and intends to be back in MN when she completes. That would sure simplify things.
 
LdiJ

LdiJ

Senior Member
blueman said:
Thanks. I talked with a CPA briefly and the dual-state returns filing jointly is really messy.

If I forget about the potential (student-related) benefits of being a NY resident, could I just call my wife a MN resident for tax purposes?? She is only in NY for college and intends to be back in MN when she completes. That would sure simplify things.
Click to expand...
That isn't necessarily the best thing overall....and its not as messy as it seems...at least not for a professional with professional software. Don't be stubborn about doing it yourself. Go to a local tax professional.
 
T

tranquility

Senior Member
Um...it is a big hassle unless I'm missing something. We have one client in this situation and no one ever wants to do the return. (Even then we're not entirely sure we're getting it right.) The workpapers we create to try to get things as right as possible is astonishing. We've got good software and smart people with lots of experience and it is such an ugly mess I don't think we'd take on a new client in this situation again. (True, much of the difficulty comes from the clients' complex financial life. But the situation would more than double the cost of any preparation; even a simple one.)

What's the secret? How do you file when the husband and wife have residences in different states?
 
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