MFJ in NY as part-year residents with different residency dates

nysydis

Filing MFJ federal but we had a move mid-year out of NYC to MA but at different dates.

Spouse1 has 2 W2's: 

- NY source income from Jan to April while a NY resident (NY resident Jan1 to April 19)

- MA income April 22 to Dec 31 (MA resident April 20 to Dec 31)

Spouse2 has 1 W2 (non-NY source). Residency as follows:

- NY resident from Jan 1 to July 31

- MA resident from Aug 1 to Dec 31

I think we should both use form IT-203 and do MFS for NY. Form It-203 instructions specify to do separate IT-201 and IT-203 only if one spouse was a full-year NY state resident and the other was a non-resident or a part-year resident, so this does not apply.

One accountant suggested we should both be double taxed as full year residents for both NY and MA, but he was not based in either state.

How do we navigate NY and MA and federal filing?

GeorgeM

Hello nysydis:

Ordinarily your approach with regard to NY would be the correct one assuming NY was the only state tax return that needed to be filed. In that circumstance, filing as MFS using Form IT-203 would be the correct approach.

However, because for tax year 2025, you also need to file MA tax returns—as part-year residents—MA now requires a consistent filing status for married couples who file jointly on a federal tax return. In other words, because you intend to file MFJ on your federal tax return, you would also have to file MFJ on your MA tax return. There is an exception to the consistent filing status if one spouse’s gross income does not exceed $8,000. In that circumstance, MA would allow the married couple to file as MFS; however, this exception probably does not apply in your situation.

Going forward, it appears your only option for tax year 2025, is to to file MFS on all tax returns, federal and state. In this regard, each of you will need to create separate accounts in FreeTaxUSA for your respective tax returns. After completing your respective federal tax returns, with filing status of MFS, you would then begin to prepare your state tax returns, starting first with MA because MA is your current state of residence.

After preparing your MA tax return, click the State tab, and in the drop down, click on Your State Tax Return to return to the beginning of the state section. Here can you select the option “Add a State Return,” and select NY in order to begin entering your NY information.

I you still have questions, you may want to contact FreeTaxUSA customer support, while signed into you account.