You may not be able to avoid filing for both spouses, regardless of residency concerns, if either of you are domiciled in a community property state. Such states may require you to share and then split family income evenly.

What happens when spouses live in different states?

Couples who are married and living apart may be at any stage of life, with a variety of financial circumstances in play. But if couples live across state lines, they should take special care to make sure that they have a handle on their tax situation.

Are there different rules for married couples filing separately?

Different rules apply to married couples filing separately in community property states (see Filing in a Community Property State below). This can impact the benefits or drawbacks of choosing MFS in those states.

When does one spouse have to file as a nonresident?

If either spouse must file as a nonresident, either because of community property rules or to report income sourced to the nonresident state, couples should also check for any reciprocity agreements between the states in question.

You may not be able to avoid filing for both spouses, regardless of residency concerns, if either of you lives in a community property state. Such states may require you to share and then split family income evenly.

Can a resident spouse file a joint tax return?

In some cases, the resident spouse may still want to file a joint return, in order to secure more favorable rates, or certain credits or deductions. However, some states require spouses living in different states to file separately. It is best to consult a tax expert about the most beneficial way to file.

Why does my spouse have to file as a nonresident?

This may be a case where you need to consult a tax professional. If either spouse must file as a nonresident, either because of community property rules or to report income sourced to the nonresident state, reciprocity agreements between the states in question may have an impact.

Can a person live in more than one state?

An individual may reside in multiple states, but can have only one domicile — that taxpayer’s fixed, permanent home. Individuals domiciled in a state are automatically considered state residents for tax purposes. Usually, this means the state is entitled to tax that spouse’s worldwide income.