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State income tax for married couples living in 2 states?
I’m married but living separately from my wife. She lives and is a resident of the state of Missouri while I live in California. We file jointly on our Federal income tax.
She doesn’t work in an office but travels to conferences and works from home, her company is located in California and they take State income taxes out of her pay check for the state of California (W2 forms verify this) but she does lives in the State of Missouri and is a legal resident of Missouri. I’m self employee with all my income coming from with in the state of California and am a resident of California.
So the question is: do we file just one state income tax for California since our Federal income tax is married filing jointly or do the states want us to split what we owe between the California and Missouri?
I’ve calculated the Fed tax for both joint and separate and we get back much more when filing joint so I want to maintain that status.
1 Answer
- StephenWeinsteinLv 71 decade agoFavorite Answer
This is much more complicated than it seems, because California is a community property state.
As a result, if you file separately (federal or state), any income that is community property must be split equally between the returns while any income that is not community property must be reported only on the return of the person who earned it. (This is even more confusing when the couple is an RDP, which is treated as married for California state tax purposes, but single for federal tax purposes.)
