MFJ while living in AZ and GA/stationed abroad for military
Looking to file MFJ on federal return and separate for states (AZ and GA)
Spouse 1: lives and earned income (all of 2023) in AZ
Spouse 2: residence in GA but spent entire 2023 stationed overseas with the military
Can we do MFJ on federal and file separate for both GA and AZ? Or can we file joint for either/both of those states? How do we do this with your software and also with AZ being a community property state?
Thank you!
Best Answer
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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. If you wish to use our website, you'll need to create three accounts. You can then e-file your federal return, but you'll need to send paper forms to your states. 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 Filing menu to file your federal return.Account Two, Georgia Spouse:
On this account, enter your information and select Married Filing Separately as the filing status. Only enter the GA spouse's 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, Arizona Spouse:
On this account enter your Arizona resident spouse's information and select Married Filing Separately as the filing status. Arizona is a community property state. If you file a separate return, you must figure how much income to report using community property laws. Under these laws, a separate return must reflect one-half of the community income from all sources plus any separate income. When you file separate returns, you must account for community deductions and credits on the same basis as community income. Both you and your spouse must either itemize or not itemize. If one of you itemizes, you both must itemize. If one of you takes a standard deduction, you both must take a standard deduction. One of you may not claim a standard deduction while the other itemizes.
On this account, 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 also have the option to file using the Married, filing separate filing status for both your federal and state returns. This would require you to have an account for both spouses.
Answers
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Thank you!
For the Arizona return, does the non-resident spouse (spouse that is a resident of Georgia) have to complete a non-resident Arizona return as well? Or does only the Arizona resident spouse complete the Arizona return? I was getting confused when reading the community property state guidelines.
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The non-resident spouse does need to file a non-resident Arizona return since Arizona is a community property state. You have likely already seen this source, but it provides guidance and examples of filing separate returns within Arizona when spouses have different residency statuses. See Q13 beginning on Page 2 of AZ Pub 200.
https://azdor.gov/sites/default/files/2023-03/PUBLICATION_200.pdf