How to file state tax returns separately when MFJ for federal returns?

abi1095

My husband and I got married September 2023 and were living separately in CA/CO until a couple weeks ago. He worked in CO all of 2023 and I worked in CA the whole year. We're trying to file our state taxes for our respective states but are confused about the process. The software allows us to have two states selected in our tax returns but it looks like we can only select "Resident" on one of the states. Claiming a credit on taxes paid in another state also doesn't seem like the way to go. What is the best way to file our state taxes? TIA!

MatthewD

At this time, our software requires that if you file joint on the federal return, you must also file joint on the state return. Additionally, our software requires that you send the federal and state returns from the same account when e-filing your state returns.

So in your situation to file separate state returns you will need to file your returns with three accounts. You will need to remove the two start returns from your Joint Federal Account. You can still e-file your federal return, but you'll need to send paper forms to your states from your other two account. Here's what you'll need to do:

Account One:
On this account, you would file as Married Filing Jointly. Enter the information for both you and your spouse. In the Filing menu, only order the federal return (not the state return). Then, follow the steps in the Final Steps menu to e-file your Federal return.

Account Two:
On this account, enter your information and select Married Filing Separately as the filing status. Only enter your income and expenses. Purchase a state return and choose to Mail your Federal and State Returns. Continue through the software until you get to a screen titled "View Your Return Status and Print Your Copy." Instructions for mailing your state return will be located on this screen. If you are asked to mail in a copy of your federal return with your state return, include a copy of your actual Married Filing Jointly return, not the "mock" return created in this account.

Account Three:
On this account enter your spouse's information and select Married Filing Separately as the filing status. Only enter your spouse's income and expenses. Purchase a state return and choose to Mail both your Federal and State Returns. Continue through the software until you get to a screen titled "View Your Return Status and Print Your Copy." Instructions for mailing your state return will be located on this screen. If you are asked to mail in a copy of your federal return with your state return, include a copy of your actual Married Filing Jointly return, not the "mock" return created in this account.

You may want to keep record of each account in case you need to do this for following years.

Also, Keep in mind not every state allows you to use a different filing status than federal. Check first with the state instructions or contact FreeTaxUSA support when signed into your account.