I work (and live) in Texas while my wife works (and lives) in New Hampshire. How should we file our federal taxes?

Federal taxes are filed as a joint return so income from both states is combined. State taxes are flied to each state.

Since neither TX nor NH have an income tax, there are no issues regarding how to files state taxes. However, NH does have a 5% tax on dividends and interest if the amounts received are over $2400. Assuming this doesn't apply you simply need to file your federal tax return in the normal way. If your dividend + interest income is above $2400 post back and we'll help you figure out how to file that return.

Filing across that distance CAN be a problem, but it is something I deal with on a routine basis.

If you want professional help, please email me at the email address in my profile.