Got married and moved from AZ to TX, how to file states

Forum|Forum|2 years ago
February 12, 2024
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Hi - I moved from Arizona to Texas in July this year. My wife and I then got married in November. We both work remote, her W-2 sources all of her income to TX, mine sources all of mine to AZ.

How do I go about filing state returns if we'd like to file MFJ for Federal purposes? I'm wondering if we should file MFS for state purposes or if I could do a part-year or non-resident return for AZ? Any advice?

Thanks!

DianeW777

Arizona (AZ) does not tax remote workers on the income they earned from AZ if they were never physically present in AZ.

If an Arizona-based business hires an employee living in another state full-time or is no longer an Arizona resident, the employer is not required to withhold Arizona income tax from the employee's compensation because they are working in another state.

During the residency period in AZ, you are required to include that income portion on the AZ return and pay any tax liability due. Your withholding may cover the tax. From the time you moved out of AZ, you are no longer required to pay tax on earnings while you lived in Texas (TX). Texas is one of the states that does not have an income tax.

Filing separately can be easier but it depends on what the state allows.

AZ: If you qualify as married for federal purposes, you qualify as married for Arizona purposes and must file using the status of either married filing joint or married filing separate. You can decide this based on whether the tax is the same using both filing status. You can create a second account for TurboTax to try it, then decide which filing status to use.
- AZ Filing Status and Requirements

If your wife was a resident of TX all year then you may want to file separate for AZ. There is nothing to file for TX.

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