[crazee85]

Hi,

We got married in 2014. I had been living/working in CA, and my spouse had been living/working in MA. My spouse moved to CA in Nov 2015, and we have been living together now.

My spouse has co-founded a company here in CA, and is not receiving any income currently.

How do we file 2015 taxes? I guess we can just file jointly for federal. But how about state taxes? Any other tips?

Thanks!

[AtlantaTaxExpert]

You will file jointly in both states, but as part-year residents for California and as a full-year resident in Massachusetts while claiming a tax credit for taxes paid to California.

It sounds complicated, but any competent tax professional knows what to do.

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

[crazee85]

Thanks for your reply.

One question: I was full-year resident in California, and my spouse was part-year resident of Massachusetts and California. And we are now living in California. Shouldn't we file as part-year residents of Massachusetts and full-year residents of California instead?

[AtlantaTaxExpert]

That is another alternative. You MUST be a full-year in one state and part-year in the other, then claim a credit for the taxes paid in the part-year state.

[crazee85]

Cool, thanks!

Is this also another alternative?
- MFJ Federal
- full-year CA MFS => for myself
- part-year MA MFS => for spouse
- part-year CA MFS => for spouse

[AtlantaTaxExpert]

California requires you file the same you you filed on the federal return. Massachusetts seems to be more flexible, but the California jointrequirement makes your scenario untenable.

[crazee85]

Aah, I did a similar thing last year, when my spouse was a non-resident of CA for the entire tax year.

It indeed seems like it might be hard to do it this year.

"If you are married and file a joint federal tax return, you may file separate for
California if either of the following exceptions applies:
• One spouse was an active duty military member.
• One spouse was a nonresident for the entire tax year and had no income
from California sources during the tax year."

My spouse started a company in CA upon move, and has no income since move. Does that impact anything?

[AtlantaTaxExpert]

But your spouse was NOT non-resident for the whole year, so filing separately is NOT permitted if you file a joint federal return.

[joypulv]

Many thanks for all that you do here, AtlantaTaxExpert!

[AtlantaTaxExpert]

Glad to help!

[crazee85]

Hi AtlantaTaxExpert,


Thanks for all your help, really appreciate it. Just wanted to get some clarifications.

---

Here are our statuses again:

Myself
- Lived and worked in CA for the entire year

Spouse
- Was living and working in MA.
- Moved to CA in middle of Nov 2015. Joined a start-up in CA as cofounder. No income.
- Went for vacation to India in beginning of Dec 2015 until the end of year.

---

Q1: Can my spouse be considered non-resident of CA with no CA income in 2015, since his stay was only around 15-20 days with no income?


Q2: If not, I believe we will have to file CA MFJ for sure:
"If you are married and file a joint federal tax return, you may file separate for
California if either of the following exceptions applies:
- One spouse was an active duty military member.
- One spouse was a nonresident for the entire tax year and had no income
from California sources during the tax year. For more information get FTB
Publication 1031, Guidelines for Determining Resident Status."

In that case, which of the following is the best option for us:

Option 1
- Part-year CA MFJ (only include my CA income, since spouse has no income from CA)
- Part-year MA MFJ (only include spouse's MA income, since I have no income from MA)

Option 2
- Part-year CA MFJ (only include my CA income, since spouse has no income from CA)
- Part-year MA MFS (only include spouse's MA income)

Option 3
After thinking more about our earlier discussion, I am not sure how we can file full-year in one state and part-year in another state. Isn't that inherently contradictory?


Sorry for the super-long message. Just wanted to write down whatever was going on in my head. As always, I really appreciate your help.


Thank you!

[AtlantaTaxExpert]

To do this type of modeling, I would have to actually have copies of your W-2s.

And this type of modeling is time-intensive, and at this time of year, time is money, so you would have to contact me at the email address in my profile and arrange for payment of a modeling fee.

[crazee85]

I am sorry I framed my question wrongly. I actually wanted to ask if these options are feasible or not.

[AtlantaTaxExpert]

Okay, I believe Option #1 is both viable and legal.

[crazee85]

Awesome! Thank you so much AtlantaTaxExpert. Really appreciate all your help on this forum!

[AtlantaTaxExpert]

Glad to help!

[crazee85]

Hi AtlantaTaxExpert,

Sorry for another question.

The document (Filing Status) says:
"If taxpayers are married as of the last day of the year but have a Massachusetts residency tax year that begins and ends on different days, they must file married filing separately assuming each spouse has a requirement to file."

So, it seems like we are forced to file MFS for MA? As you had pointed out earlier, we are also forced to file MFJ for CA.

Is this allowed in that case?
- Part-year CA MFJ (only include my CA income, since spouse has no income from CA)
- Part-year MA MFS for spouse (only include spouse's MA income)
- I guess I don't need to file another part-year MA MFS for myself, since I didn't have any MA income.



I know you must be super busy, but would really appreciate a response! Thanks!

[AtlantaTaxExpert]

Yeah, that is probably okay.