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taxpayer and spouse were full-year residents in different states

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Level 3

Taxpayer is CA resident and spouse is NC resident in 2019.  They are filing joint returns.  How do I indicate "resident state as of 12/31"?  Will it be CA or NC?

Also, is it possible that can file joint state returns with both CA and NC?

thank you.

 

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Level 15
Do they own a home? If so, in which state? Where do they plan on spending their retirement years? Do they each have a driver's license from their respective state?
I would propose that they are both residents of one of the two states and will get a credit for the taxes paid in the other.

ex-AllStar

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Level 15
Do they own a home? If so, in which state? Where do they plan on spending their retirement years? Do they each have a driver's license from their respective state?
I would propose that they are both residents of one of the two states and will get a credit for the taxes paid in the other.

ex-AllStar

View solution in original post

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Level 15

You have to read the instructions for each state to see if MFJ is allowed, or even required.

Remember, too, that CA is a community property state.

 


ex-AllStar
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Level 11

@George4Tacks "I would propose that they are both residents of one of the two states"

I probably would have done that 50 years ago, too.  Different century, different millenium.

@sjrcpa 

Bonus points for pointing out community-property issue, then not wanting to touch it further.  This is definitely a "send them down the street" return.  

NC resident will probably have to pay tax on half the California income.  NC probably allows a credit for some or all of it.  CA resident pays tax on the other half, and nothing to NC.  Did they do a prenuptial, waiving community rights on income?  No, of course not, they were in love and just wanted to get married.  Or maybe they lived together in Tennessee for 20 years, until now.  

As I said, send them down the street.  Otherwise, get a $1,200 deposit before you start work.  They have it, they just got a check from IRS.  

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Level 3

good points.  Thanks.

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