MFJ if spouse moved during the year to a different state

noodles

We lived together in NY for about half of 2024, but then my spouse moved to MI for the latter half.

I am still living and working in NYC.

My spouse lives in MI and has no income other than interest and dividends.

How do we file our federal and state taxes?

Henry

Hi noodles, taxes can definitely get a little more complicated for spouses with different residencies. First, you'll need to look at the instructions for each state involved.

The NY instructions (see pg 4) say that in most cases you must use the same filing status you used on
your federal return. However, if one spouse is a NY resident and the other is a part-year resident, then you must either file separate NY returns using the MFS filing status OR file jointly, as if you were both NY residents using the MFJ filing status.

So it sounds like NY will allow you to file a joint federal return and either joint or separate state returns.

Now let's look at MI. According to pg 4 of the MI instructions, if you file a joint federal return, you must also file a joint Michigan return.

Taking the rules for both states into consideration, it's looking like you may have a couple options:

1. File an MFJ federal return,
file an MFJ MI return, and
file an MFJ NY return or an MFS NY return for each spouse

OR

2. File an MFS federal return,
file an MFS MI return, and
file MFS NY returns for each spouse

With option #1, you are able to claim the benefits that come with filing a joint return. However, this would require you to report both you and your spouse's income to MI, even though one of you was not a resident.

With option #2, each spouse would be able to file the appropriate full-year or part-year resident return for each state. However, you miss out on the benefits that come with filing a joint return.

You will need to decide which option is best for you. You can create separate accounts in the software to try each one out and see which one is more beneficial. For example, in account #1, enter your MFJ federal, MI and NY returns. In account #2, enter your MFS federal, MI and NY returns. In account #3, enter your spouse's MFS federal, MI and NY returns. Then choose whether you want to file the returns in account #1 or the returns in account #2 and #3.