How Do I File My Taxes If I Got Married & Moved to Another State?
If you get married and move to another state, you have triggered two possible tax changes when you file, and the ramifications are different for your federal and state filings. Marriage can often save you taxes if you file jointly, and this applies to both your federal and state returns. However, in terms of taxes, although the federal government doesn't care if you move during the year, the states will require you to choose the correct state for filing, even if it is not your most advantageous option.
Getting Married and Filing Status
Determining your filing status is important because it can affect your filing requirements, your deductions and your overall taxes owed. Under most situations, if you are legally married, your filing status can either be "married filing jointly" or "married filing separately." The Internal Revenue Service (IRS) allows you to select the filing status that is the most advantageous for your tax situation, as do the individual states.
Establishing State Residency
A more complicated tax situation arises when you move to another state. As a general rule, your state of residency, not necessarily the state where you earned your income, is where you should pay your state taxes, but you may also have to file a non-resident return in the other state. If you have already paid some taxes to one state and it is later determined that your state of residency is a different state, you are normally allowed to claim taxes already paid to the first state as a credit against your taxes due in your state of residency. Although most states have similar residency requirements, you should check your state regulations to ensure you are following protocol. For example, the State of California offers a general guideline that a California resident is a person who enters California for other than a temporary or transient reason and who has his "closest connections" with California.
Paying Taxes in More Than One State
If you earn income in more than one state, but you determine that you actually held residency in more than one state as well, you will have to file resident tax returns in each state for that tax year. Unlike a non-resident filing, when you file two separate state returns, you will have to pay taxes in both states. Generally, your W-2 tax form will indicate your state of residency for your income, but you may have to consult the regulations of each state you lived in. You may wish to consult a tax adviser for this more complicated situation.
File Your Taxes
After you have sorted out your residency situation, don't forget to file your federal return as well. Attach your state returns to your Federal Form 1040, and select the most advantageous filing status you can, based on your marital situation.
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