For the following set of factors which state should be the husband’s domicile?
1] A couple is married and jointly own a family home in Ca (both names are on the deed).
2] The wife is domiciled in Ca (community property state) and lives in the family home.
3] The husband spends most of the year in PA (a separate property state) for business purposes, yet he also does spend time with his wife in the Ca family home. He rents a place to stay in PA. They have no plans to divorce.
4] The wife has W2 income from CA.
5] The husband has sole proprietor (Schedule C) and pension 1099-R income. PA would be his Tax Home for travel expenses related to his business.
- The husband’s 1099-Rs list PA on the forms.
- PA does not tax PA resident’s pension income.
6] They file MFS tax returns and say they do not share information.
Based on the limited factors above would the following be the correct way to file their MFS returns?
A] Both the husband and wife should both be considered to be domiciled in Ca.
B] The wife should file a CA MFS Resident return based on one-half of her Ca income. She would also file a Federal MFS 1040 based on the same income.
C] The husband should file a PA MFS Non-Resident return based on his Schedule C income and pensions.
D] The husband should file a CA MFS Resident return based on one-half of his wife’s Ca income and all his other income. He can also file a Ca Schedule S to get a credit for taxes paid in PA. He would also file a Federal MFS 1040 based on the same income.
If the factors show the husband is really domiciled in PA, then would the following be the way to file their returns?
A] The wife should file a CA MFS Resident return based on one-half of her Ca income. She would also file a Federal MFS 1040 based on the same income.
B] The husband should file a PA MFS Resident return based on his Schedule C income and pensions, and one-half of the wife’s CA income. He would file a Federal MFS 1040 based on the same income.
C] The husband should file a CA MFS Non-Resident return based on one-half of his wife’s CA income. He can also file a Ca Schedule S to get a credit for taxes paid in PA.
Other:
1] The husband’s 1099-R forms list PA as the state. If the husband is really domiciled in Ca, shouldn’t he get the state changed to CA on the 1099Rs? (I suspect they want to hide the pension income from Ca so the husband files a PA MFS Resident return so it is not taxed).
2] The husband claims they do not share tax information but since they are married and share a home that seems unlikely. Is the only way to handle that is for the preparer to document what the husband says and file the husband’s PA & Federal MFS returns without the CA income. Obviously, the wife would use a different preparer to file her CA and Federal MFS returns with all (100%) her CA income?
1] A couple is married and jointly own a family home in Ca (both names are on the deed).
2] The wife is domiciled in Ca (community property state) and lives in the family home.
3] The husband spends most of the year in PA (a separate property state) for business purposes, yet he also does spend time with his wife in the Ca family home. He rents a place to stay in PA. They have no plans to divorce.
4] The wife has W2 income from CA.
5] The husband has sole proprietor (Schedule C) and pension 1099-R income. PA would be his Tax Home for travel expenses related to his business.
- The husband’s 1099-Rs list PA on the forms.
- PA does not tax PA resident’s pension income.
6] They file MFS tax returns and say they do not share information.
Based on the limited factors above would the following be the correct way to file their MFS returns?
A] Both the husband and wife should both be considered to be domiciled in Ca.
B] The wife should file a CA MFS Resident return based on one-half of her Ca income. She would also file a Federal MFS 1040 based on the same income.
C] The husband should file a PA MFS Non-Resident return based on his Schedule C income and pensions.
D] The husband should file a CA MFS Resident return based on one-half of his wife’s Ca income and all his other income. He can also file a Ca Schedule S to get a credit for taxes paid in PA. He would also file a Federal MFS 1040 based on the same income.
If the factors show the husband is really domiciled in PA, then would the following be the way to file their returns?
A] The wife should file a CA MFS Resident return based on one-half of her Ca income. She would also file a Federal MFS 1040 based on the same income.
B] The husband should file a PA MFS Resident return based on his Schedule C income and pensions, and one-half of the wife’s CA income. He would file a Federal MFS 1040 based on the same income.
C] The husband should file a CA MFS Non-Resident return based on one-half of his wife’s CA income. He can also file a Ca Schedule S to get a credit for taxes paid in PA.
Other:
1] The husband’s 1099-R forms list PA as the state. If the husband is really domiciled in Ca, shouldn’t he get the state changed to CA on the 1099Rs? (I suspect they want to hide the pension income from Ca so the husband files a PA MFS Resident return so it is not taxed).
2] The husband claims they do not share tax information but since they are married and share a home that seems unlikely. Is the only way to handle that is for the preparer to document what the husband says and file the husband’s PA & Federal MFS returns without the CA income. Obviously, the wife would use a different preparer to file her CA and Federal MFS returns with all (100%) her CA income?
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