I work in New York, whereas my wife works in Massachusetts. We are wondering about our state return obligations. If we file a joint federal return, can we in turn file separate state returns to make our job easier, or are we obligated to file jointly in two states?

To put things in perspective - we would rather claim Mass residence; I paid about four times as much in NY taxes as my wife did in Mass taxes; and Mass has a flat rate of 6 percent with a more liberal code to NY's 7 percent top bracket that would apply to me/us.

Thank you for your kind help.

You must file jointly in both states, but you pay taxes ONLY on the income earned in those state. This assumes you each LIVE in their respective working state.