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Posted by Katie on April 13, 2007, 3:11 am
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ghoma...@gmail.com wrote:
> need some help/advice
>
> my wife lives in PA and stopped working full time in Mar 06
> to take care of our new baby. I live and work in NY full
> time. I know we can file federal jointly but what to do
> about state tax filing? I would like to claim both as full
> dependents now that she is a SAHM. Can she file seperately
> in PA and I can claim her as a dependent also along with our
> daughter?
>
> We have no mortgage interest to deduct yet and I itemize
> deductions for work related expenses. Should we continue to
> file seperate state and federal taxes?
In both PA and NY, you can each file your own separate,
full-year resident return, or you can elect to file jointly.
If you choose to file jointly, you will file as if both of
you were full-year residents of the state. If one spouse
has significantly less income than the other, you may find
that a joint return gets you a better result in NY, but
maybe not in PA. The only way to tell is to calculate the
taxes both ways in each state. You are not bound in either
state by the election you made in the other. However, if
you include your NY source income in a PA return, or your
wife's PA source income in a NY return, you can claim a
credit from the state that taxes the income on a residence
basis for the tax paid to the source state.
Beware; you may have residence issues. It is uncommon for
spouses who are not separated to have different domiciles,
and both NY and PA define tax residence to include all
individuals domiciled in the state. Ordinarily you would be
domiciled where your wife and infant child live, or vice
versa. The domicile of each of you would be determined with
reference to all of the facts and circumstances, and it is
certainly possible that you have separate domiciles, but it
would be unusual.
Katie in San Diego
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