Military filing jointly, but residents of two different states.
I am having some issues with my return this year.
I am active duty military, and I am a Colorado Resident living in California, and my wife is a California resident living and working in California.
When I put in my W-2 all of the information for the return makes sense, but when I put in her W-2, the amount due to Colorado Increases and the overall federal return decreases.
So why does the amount due Colorado tax increase and the federal return decrease when I add her W-2? She isn't a Colorado resident and has nothing to do with Colorado.
Should we just file married but separately?