married couple living in different states

Forum|Forum|1 year ago
October 30, 2024
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I am full-year resident of CO, with sole income from CO, spouse is full-year resident of NY with sole income from NY. After filing federal married jointly, how do we avoid paying double tax in any state?

Best answer by gforeman1

You are not subject to double taxation on your state taxable income.

For Colorado (CO) You are required to file the same filing status used on your Federal tax return. You would be a full year resident and your spouse would be a non-resident. There will be a form 104PN that you will file to show the residency status. See this link for more information on CO Joint Filers & Apportioned Tax

For New York (NY) , you can each file a Married Filing Separate Return since one of you will be full year resident and other lives in another state. See the NY Filing Status If you are required to pay any taxes in CO on a portion of your spouses' NY income, you should be able to claim a tax credit on the NY for taxes paid to another state.

Chslade

Since you mentioned that you are both are receiving income from each of your respective state. You shouldn't be paying double tax to each state. You would designate each of your income to either Colorado or New York. The Colorado spouse with Colorado income would have their income go to Colorado and New York spouse with New York income would go to New York.