However - IF you and your wife live in two different states, AND neither of you has any income from sources in the other's home state, THEN you can each file as Married Filing separately for your home state income tax return, even though you filed as Married Filing Jointly on your federal return. In this way the husband is taxed by his home state on his income, the wife is taxed by her home state on her income, and neither has to report their income to the other's state.