Hi.
My husband lives/works in Chicago and I live/work in Washington state. When we file tax report for year 2008, is it better to report jointly or separtely? Also can each of us claim ourselves as a head of household?

Thanks!

1. To claim yourself as head of household. you must live apart for last six months of the year and must have a dependent. Read Your U.S. Tax Return: Filing Status: Head of Household (http://taxipay.blogspot.com/2008/05/head-of-household.html)

2. You can file as Married Filing Jointly (MFJ) or Married Filing Separately (MFS). If you file MFJ, then on the IL tax return, your husband is resident and will report his income, and you are non-resident and will not report your income. Same way on Washington tax return, you are resident and will report your income, your husband is non-resident and will not report his income.

I would guess off-hand that filing jointly makes the most sense. I cannot be sure without your specific tax data, but, in general, filing jointly usually produces the lowest tax obligation.

And, BTW, Washington state has no income tax. Other than that, MukatA's posting is accurate.