[theoryxandy]

Hello Experts,

My wife works for an employer in NJ and her employer was taking out NJ taxes. But her client location is in MA and she never worked in NJ. Because I work and live in Ohio, she had her permanent residence as Ohio (like the driver license, or anything for that matter). She used to spend 1/2 the time in MA (where she rented an apartment) and 1/2 the time in Ohio.Also, both of us are duly paying city taxes to the place we live in Ohio.

We'd like to file jointly. How should we proceed with filing the state taxes? Thanks upfront.

--Theo

[MukatA]

Your wife's income is not subject to NJ taxes. Tell the employer that she does not live in NJ or work is NJ. Now you will file NJ tax return to claim the refund.
Attach a statement from your employer that you live and work in MA and Ohio and never lived or worked in NJ.

About MA and Ohio,
If you are present in a state, then any income earned during this period, must be reported to the state.

To your resident state, you must report your worldwide income for the year. Read: Your U.S. Tax Return: Working or Living in Two or More states

[theoryxandy]

Thanks, MukatA!

For NJ, we will file her taxes as non-resident as you advised. For joint filing, I understand that I should also state myself as non-resident for NJ, right?

I would appreciate if you can give me more clarification on MA and Ohio situation.
1. For Ohio, do you mean that both my wife and I should file as residents report the whole COMBINED income for the year?
2. For MA, do you mean that we should report my wife's income for 2008 and report my income as $0 (as non-resident)?
3. If we end up doing both the steps, aren't we ending up paying double the taxes? Would we be able to claim any tax credit for one state or the other?

Thanks again!!

[MukatA]

1. Ohio. If Ohio considers you resident of Ohio for 2008, yes. Read residency requirements at the state web site.

3. If you are also reporting MA income to Ohio, then on Ohio return, you will also claim credit for taxes paid to Ohio.