If you and your spouse filed a joint federal return, but only one of you is a Virginia resident, the resident must use Filing Status 3. If you and your spouse filed separate federal returns, you may file a combined Virginia return using Filing Status 4, as described below.
Filing Status 3 – Married, Filing a Separate Return: If you and your spouse filed separate federal returns, you may use this filing status. If you and your spouse filed a joint federal return, but only one of you is a Virginia resident, the resident must use Filing Status 3.
Should I claim my wife as a dependent?
Your spouse is never considered your dependent. If you’re filing a separate return, you may claim the exemption for your spouse only if they had no gross income, are not filing a joint return, and were not the dependent of another taxpayer.
Can a married couple file a joint tax return in Virginia?
Married couples filing Form 760PY, the Virginia part-year resident return, have two options for reporting their income on the same return. A married couple may elect to file a joint return under Filing Status 2, or to file a combined return under Filing Status 4.
How much tax do you pay on joint income in Virginia?
With this adjustment, two-income couples who file a joint return owe no more tax than the combined tax that would be due if separate returns were filed. Joint taxable income must be over $3,000 to benefit from this adjustment. Virginia’s income tax is imposed at graduated rates, starting at 2% and capping at 5.75%.
How does the spouse tax adjustment work in Virginia?
If a couple elects to use the Spouse Tax Adjustment, they calculate their income tax separately using the Spouse Tax Adjustment worksheet. As a result, the first $17,000 of each of their incomes will be taxed at the lower rates. Consequently, using the Spouse Tax Adjustment can result in a tax savings of up to $259.
Can a resident spouse file a joint tax return?
In some cases, the resident spouse may still want to file a joint return, in order to secure more favorable rates, or certain credits or deductions. However, some states require spouses living in different states to file separately. It is best to consult a tax expert about the most beneficial way to file.
