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May 12, 2021
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Turbotax says it can't file our AL taxes

  • May 12, 2021
  • 1 reply
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Good afternoon,

I'm active duty military, my spouse is a civilian who lived in GA for part of 2020.  Turbo tax has a warning message saying AL  requires we file separately even though we are filing federal jointly.  Well, does anyone know how to get this done online? Accountants want 700+ dollars just do file his state taxes.  

Best answer by AmyC

My apologies! Thank you so much for your service!!!

The laws changed in 2018 for the spouse. If the spouse lived with you instead of their normal resident state and you were posted somewhere outside of your resident state, then your spouse can just say they are a resident of your state. In fact, the federal side wants you voting in the same state and says that for federal purposes, you are residents of the same state.

This was created to avoid the nightmare of MFS and MFJ and all the different rules between the states. You may have to file multiple states but they can all be MFJ.

 

If you meet the above requirements, you can definitely file that way.

If not, you will do a fake MFS federal to create a real MFS state return. See download products.

 

For full instructions, see How do I prepare a joint federal return and separate state returns?

 

1 reply

AmyC
Employee
May 12, 2021

If your wife is following you around to your assigned stations, she may be able to claim the same residency as you. See MSRRA: Military Spouses Residency Relief Act . This would allow you to file MFJ for AL and claim a credit for the GA income.

 

Otherwise, you can create a dummy MFS return. If you are using the FreeFile delivered by Intuit TurboTax. then price is not a concern. If you are paying for the returns, you may want to switch to the desktop to save money.

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marj33Author
May 13, 2021

Thank you, isn't it too late for my husband (civilian) to claim my state of residency at this point? I just came across that earlier today as an option.  Just wondering if we can do it for this year's filing.  

What do you mean switch to desktop version?

AmyC
AmyCAnswer
Employee
May 13, 2021

My apologies! Thank you so much for your service!!!

The laws changed in 2018 for the spouse. If the spouse lived with you instead of their normal resident state and you were posted somewhere outside of your resident state, then your spouse can just say they are a resident of your state. In fact, the federal side wants you voting in the same state and says that for federal purposes, you are residents of the same state.

This was created to avoid the nightmare of MFS and MFJ and all the different rules between the states. You may have to file multiple states but they can all be MFJ.

 

If you meet the above requirements, you can definitely file that way.

If not, you will do a fake MFS federal to create a real MFS state return. See download products.

 

For full instructions, see How do I prepare a joint federal return and separate state returns?

 

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"