2010 Taxes: Married Filing Jointly question about claiming credit & income allocation
Hi Tax Gurus,
I am a resident of CA (since 2007) and my wife was a resident of IL (since 2006). We got married in June 2010 and in Sept 2010 she moved to CA. I work in CA on H1, while she is on H4 after the move. My income is from CA and her income was from IL until the move and she has no income in CA.
My questions:
1. We believe married filing jointly is the best option. True?
2. For CA state return, what form to file and do we declare all worldwide income (including IL)?
3. For IL state return, what form to file and do we declare all worldwide income or only her income earned in IL?
4. Can I claim a credit in CA return for paying taxes to IL?
I read about CA being community property state - so half the income I earned from June to Dec 2010 belongs to my wife. Do we have to split it this way even if we are filing jointly? Do we have to declare this split allocation in IL or CA state returns even if we are filing jointly? Eg: in #3 above, for IL state return should we declare her IL income and half of my June-Dec earnings?
Thanks,
Sivaram
Comment on ebaines's post
Thank you Ebaines for the prompt answer. I have some follow-up questions. Do I post here or post in a follow-up answer. I'll do the latter.
Comment on ebaines's post
Thanks ebaines, I tried again and back to more issues. I've posted a follow-up answer