My husband and I got married in June 2010. Prior to getting married, I lived in NYC and he lived in another state. After getting married, we still lived in separate states. Furthurmore, my husband deployed to a combat zone in August. How would we go about filing a tax return? Would we file MFJ along with a NY return as well as one with his domicile state and put my address as a home address? Should we claim his state as our home state (since in NYC there is double tax for state and city)?

I also heard that any income he earns while in a combat zone is tax free so how would we take care of that on the return? Do we just deduct whatever income he earned in a combat zone from his total income and only report that on his w-2?

Any advice would be appreciated. Thanks!

If you have lived in NYC all year, and have only NY state income, and if your husband has lived in a different state all year, and has no NY state income, then:

1. For federal, file as MFJ.
2. For NY State/City - file as MFS, and report only your income. Usually if you file jointly on your federal return you are required to file jointly on your state return as well, but there is an exception for couples who have not been residents of the same state at any time all year and where neither person has any income at all from the other person's state. Your husband would file as MFS in his home state as well.

You can not file as a resident of his state, because you are a resident of NYC. Yes, you pay both NY State and NYC resident tax on your income (not his), but that's the cost of living where you do.


As for combat pay - it is tax free if your husband is an enlisted soldier (not a commissioned officer). If he is an officer a portion of his combat zone pay is tax-free. His W2 should not include the tax-free combat pay. For further info see: Combat Zone Tax Exclusions - Military Benefits - Military.com

QUOTE," . . . but there is an exception for couples who have not been residents of the same state at any time all year and where neither person has any income at all from the other person's state. Your husband would file as MFS in his home state as well."----- Good point.