Saturday, August 21, 2010

Married living in RI, wife works in RI and I work in MA, files tax jointly. Which state to file tax?

Should both of us file (jointly) tax in MA even if my wife did not work in MA? Or, is it better if I file as head of family in MA ? Please advise what would be best our my case. Thanks.Married living in RI, wife works in RI and I work in MA, files tax jointly. Which state to file tax?
You can file jointly for both MA and RI.





In RI, you will report all of your income including that earned in MA.





You will file a MA Non-resident return showing only the income earned in MA.





RI will give you a credit equal to the lower of the tax paid to MA or the amount of RI tax on the MA income.Married living in RI, wife works in RI and I work in MA, files tax jointly. Which state to file tax?
You *always* file your taxes in the state in which you live, not the state in which you work.





The RI state tax return may ask if any of your income was earned in another state. If it does, answer ';yes'; and then follow whatever directions they give you.





Your employer should have known that you live outside of Massachusetts, and so he should not have withheld any MA state tax from you. I don't know if RI even has a state tax, but if they do, and if your MA employer did not withhold RI state tax, that could be a problem. Check your W-2's and see how much was withheld from your paycheck, and for which state.





(You *do* know your taxes were due almost two months ago, right?)
as far as the IRS, it wont make much differnce where you file or if you file jointly or not.





but as for state returns, they have specific rules. it may turn out that you may have to file in both states (one as a resident and the other as a nonresident). you really have to look into the tax laws of each state.

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