Many taxpayers are surprised to learn California even allows separate residency status for spouses. But in fact, there is no such thing as “marital” residency. Residency status always belongs to an individual, whether married or not.

Can a married couple file jointly if they live in different states?

In some cases, spouses who live in different states can submit their federal tax returns as “married filing jointly” while filing their respective state returns as “married filing separately.” Other times, there may be tax advantages to filing jointly in one state, or the nonresident spouse will be required to file.

Can a person have dual residency in two states?

Yes, it is possible to be a resident of two different states at the same time, though it’s pretty rare. One of the most common of these situations involves someone whose domicile is their home state, but who has been living in a different state for work for more than 184 days.

Is filing married filing separately beneficial?

Separate tax returns may give you a higher tax with a higher tax rate. The standard deduction for separate filers is far lower than that offered to joint filers. In 2020, married filing separately taxpayers only receive a standard deduction of $12,400 compared to the $24,800 offered to those who filed jointly.

Can a spouse live in both Florida and Georgia?

Because Florida does not tax income, it would be beneficial for Anne to establish herself as a Florida resident. She would then only owe Georgia tax on any income she earned in Georgia – possibly none, depending on how she and Jack have set up their finances.

How many married couples live in different states?

Long-distance marriages are on the rise. The number of married couples who live apart more than doubled between 1990 and 2015 to 3.5 million couples, according to the U.S. Census Bureau. With proper planning, spouses who live in different states can avoid paying unnecessary state taxes.

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.

Can a nonresident file as a Married Filing Separately in Georgia?

Whether Anne files as a nonresident or does not file in Georgia at all, Jack will need to file his state return as “married filing separately,” even if he and Anne file a joint federal return. To do this, Jack should prepare a mock “married filing separately” federal return.