[mochasak]

Hi -

My husband is in the military stationed in Missouri and I am living and working in Maryland. We want to file jointly, but are unsure how to do so. Please advise.

Thanks.

[AtlantaTaxExpert]

This task is somewhat complicated, but not impossible, especially if you file electronically.

First, you need to get his tax data, probably only his military W-2. With that, prepare the federal return jointly.

You will need to prepare the Maryland return jointly, but unless your husband is a legal resident of the state of Maryland (he has designated Maryland his domicile state with the military), his military pay will NOT be taxed on the Maryland return. It WILL be reported on the return and probably used to raise your tax rates, but the actual military salary will NOT be subject to Maryland income taxes.

If your husband has a domicile state (other than Maryland) that has a state income tax, then, more than likely, he will have to file a state income tax return for his domicile state. Whether he has to pay taxes depends on the state tax laws for that state.

If you want professional help to do this, I prepare returns like this as a matter of routine. You can contact me at [email protected].

[mochasak]

I guess that's my question. He is resident of PA training MO and Im a MD resident. So he'll have to pay my taxes in PA but should get a refund in MD right?

[AtlantaTaxExpert]

Joint tax returns will be filed for the federal return and for the states of Pennsylvania and Maryland.

Both your salary and his salary, plus any other income, will be reported on the federal return, and all of that income will be taxed under the Married Filing Jointly tax tables.

Both salaries will be reported on BOTH the Maryland and Pennsylvania tax returns, but only his salary will be taxed by Pennsylvania, and only your salary will be taxed by Maryland.

The federal return can be efiled with little problem.

However, to avoid delays in processing, the state returns need to be mailed.

When you mail in the MD tax return, attach a copy of the PA return to it, and vice versa. That way, each state knows about the other state's return and can see that taxes are being paid to the other state. It answers questions before they can be asked.

[tcnick]

"Both salaries will be reported on BOTH the Maryland and Pennsylvania tax returns, but only his salary will be taxed by Pennsylvania, and only your salary will be taxed by Maryland."

Do you file as Residents in both states then, but only show the appropriate income? Also, is this state dependent? I tried doing this with IL and AZ, and IL kept trying to charge me for my wife's income in AZ.

Thanks.

[AtlantaTaxExpert]

Given the date of your post, you have probably resolved the problem.

If not, email me at [email protected] for a free consultation.