How to handle filing jointly with spouse when we live in different states?

Yes, you can absolutely file jointly for federal taxes and separately for state taxes. This is a common approach for couples living in different states. For your federal return, filing jointly is usually the most advantageous option from a tax perspective. You'll complete one federal return together that combines both of your incomes, deductions, etc. For state taxes, you'll need to file in both Michigan and Arizona since you each had income in those states. Michigan will tax your Michigan income, and Arizona will tax your wife's Arizona income earned while she was there. You'll typically file as "married filing separately" on these state returns, though some states have special forms for part-year residents or non-residents with in-state income. Some tax software makes this process easier than others, so I'd recommend using one that handles multi-state situations well.

After struggling with a similar situation last year, I found https://taxr.ai super helpful for figuring out our multi-state filing mess. My husband was working in Texas while I was in Oregon, and we were completely confused about whether to file jointly or separately for each state. I uploaded our W-2s and previous returns, and their AI analyzed everything and gave us step-by-step instructions specific to our situation. Showed us exactly which forms we needed for both states and how to fill them out.

Just wanted to follow up - I tried taxr.ai for our NY/FL situation and it was a game changer! Uploaded our documents and within minutes had clear instructions for handling the partial-year residency issue with NY. It even identified a special credit we qualified for that I had no idea about! Ended up getting $840 more back than we expected. The step-by-step guide made it easy to file correctly without the usual stress of wondering if I was doing it right.

If you need to talk to a human at the IRS about your filing situation (which might be a good idea in your case), I strongly recommend using https://claimyr.com to get through to them. I spent literal DAYS trying to get someone on the phone at the IRS about my multi-state situation last year. Found them through a YouTube video (https://youtu.be/_kiP6q8DX5c) and they got me through to an actual IRS agent in about 15 minutes. The agent walked me through exactly how to file correctly for my situation.

I have to admit I was super skeptical about Claimyr but I tried it after posting my question here. Holy crap it actually worked! After trying for THREE WEEKS to reach someone at the IRS about my Michigan/out-of-state situation, I got through to a real person in about 25 minutes. The agent confirmed exactly what I needed to do for my multi-state filing and cleared up all my confusion. Literally saved me days of stress and uncertainty. I'm still shocked at how well it worked!

Just to add some extra context - my husband and I were in this exact situation (me in PA, him in NC) and we found that our state returns got a bit complicated. If you use tax software, make sure it specifically handles multi-state returns well. We tried using [popular tax software] and it kept getting confused about how to allocate our deductions between states.

One thing to watch out for - some states have different rules about residency! I moved from California to Texas mid-year and California tried to claim I was still a resident because I didn't fully establish a permanent home in Texas right away. Make sure you understand each state's residency rules before filing.

Don't forget about potential property tax issues too. If you own property in Michigan but one spouse is claiming residency in Arizona, make sure you're still eligible for any homestead exemptions in Michigan. Some states require both spouses to be residents to get the full exemption.

Based on your situation, you're absolutely right that you can file jointly for federal and separately for state taxes. Since you're still married and living apart for work reasons (not separation), married filing jointly federally will likely give you the best tax advantages. For state taxes, you'll each file as residents of your respective states - you in Michigan, your wife in Arizona. The key thing to remember is that Michigan will want to tax your Michigan income, and Arizona will want to tax your wife's Arizona income. One important consideration: since you mentioned owning a house together in Michigan, make sure to clarify your wife's residency status with Arizona. Some states have strict rules about what constitutes residency vs. temporary work assignments. If Arizona considers her a temporary worker rather than a resident, it could affect how she files there. Also double-check Michigan's rules about your wife's status - since she's still part-owner of your Michigan home, there might be implications for property tax exemptions or other benefits that require both spouses to be Michigan residents. I'd recommend keeping good records of when each of you lived in each state throughout 2024, as this will be important for determining the correct filing approach for both states.

I was in a very similar situation last year - my husband was working in Texas while I stayed in Colorado. One thing that really helped us was creating a detailed timeline of where each of us lived and worked throughout the year, including exact dates. This became crucial when filling out the state forms, especially for determining part-year residency status. For your situation, since you own property together in Michigan and you're still living there, you'll likely be considered a Michigan resident for the full year. Your wife's situation in Arizona might be more complex - she could be considered either a part-year resident or a non-resident depending on how long she's been there and whether she intends to make it permanent. One tip: keep all your lease agreements, utility bills, and work contracts as documentation. Arizona and Michigan may have different thresholds for what constitutes residency, and having clear documentation of your living situations will help if either state questions your filing status. Also, don't forget to check if either state has reciprocity agreements that might affect your filing requirements. Some states have agreements that can simplify the process for people working across state lines.

Just wanted to add one more consideration that hasn't been mentioned yet - be careful about timing if you're planning to move back together soon. If your wife moves back to Michigan before the end of the tax year, it could change her residency status for 2024, which would affect how you file both federal and state returns. Also, since you mentioned this is temporary due to work situations, make sure to keep documentation showing the temporary nature of the arrangement (like a job contract with an end date, or correspondence about plans to relocate back together). This can be helpful if either state questions your filing status or tries to claim you as residents when you're not. One practical tip: consider doing your taxes a bit earlier this year since multi-state filings can take longer to process. Both Michigan and Arizona may need additional time to review returns that involve couples filing separately at the state level but jointly at the federal level. Getting everything filed early gives you more time to address any questions that come up.