Tax filing for a couple residing in separate states,

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Hi,
Me and my husband recently got married (Dec 3rd, 2003), and we are both =
in
the United States on H1s. He lives and works in Houston, Texas, while I =
live
and work in Denver, Colorado.
I had a bunch of questions regarding how we should be filing taxes for =
the
year 2003.
I am a full-year resident of the United States for 2003, while he is a =
part
year resident. (He arrived only in November.)
My questions are as follows:
1. Can we file federal tax returns separately, or jointly?
 a. If we decide to file separately, should we still be changing our W-4
forms to reflect our marital status?
 b. Is it okay to file seperately even though we are not technically
separated?
 c. If we file separately, can we both take the deductions for a married
couple? (I would think not). In that case, which one of us would?
2. As regarding state taxes, he is a Texas resident, so he does not have =
to
file state taxes.
 a. Since I am in Colorado, can I claim the standard deduction for a =
married
individual, even though my husband does not live with me and I am filing
seperately?
 b. Also, I would only include my income in the Colorado return, since I =
am
the resident here. Is that correct?
It would be great if you could answer the above questions.
Thanks in advance for your help.
Regards,
SXXXXX.
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david ingram replies:
I do not know what the best answer would be without working through the =
tax returns.  It would likely have been easier if you had stuck to phone =
sex for a while longer and wated until 12.01AM on Jan 1, 2004 to get =
married.
1.    You can file jointly or a married filing separately.  either is =
legal   =20
a    If you are going to be filing separately, you should still be =
changing your W-4 forms.
b    Maried filing separately has nothing to do with thje internal =
politics of your marriage.  It is just an election to report your =
individual earnings separately.  there ae many reasons why  you might do =
this but a common one is where the husband or wife has illegal income or =
is not reporting income that the other spouse knows about.  In these =
cases, the "legal" spouse should file separately or they end up liable =
for tax on the unreported income if the sopouse is caught because he or =
she signed the tax return saying "that's it!"
c    NEITHER OF YOU WILL TAKE THE DEDUCTION FOR A MARRIED COUPLE  - For =
2003, your husband is a dual status filer because he enetered the US =
this year. That means that he has to itemize his deductions unles he =
reports his world income for the year.  If it happened that he had been =
at University until the end of September and had no income, than he =
would undoubtedly be better off electing to report his world income and =
he could claim his standard deduction which is likely more because =
itemized deductions do not amount to a hill of beans for most people =
unless they have a substantial mortgage.
So, if he itemizes, which he has to do as a dual status resident alien =
(check off box 37b on page 2 of the 1040 return - read instructions), =
then you have to itemize as well.  That will likely be a real marriage =
penalty for you this year.
2.    No Texas return but you have to file a Colorado return.
a   You would claim the standard deduction for MFS in Colorado
b    Only your income would go on your Colorado tax return.
Your husband also has to file his departing Canada Tax return.
With all due respect, you might want to send the whole thing to us in =
West Vancouver
And just to point out that we are not perfect, we missed a renter's =
credit in Indiana last year and I am still mortified because the =
question was right there.
However, unless your husband happened to stumble into my old Ottawa, =
Ontario partner Gary Gauvin's office in Rockwall, Texas, his chance of =
getting his returns right this first year is very slim.  Gary is one of =
the very few people who is truly qualified to look after a US / Canada =
tax return.  Of course, we have five people in our office who do this =
all year round. You can actually phone in July or September and almost =
anyone who answers the phone can help you out with Colorado or New York =
or Hawaii or even - heaven forbid - Indiana.
Our contact information is below
David Ingram's US/Canada Services
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
108-100 Park Royal South
West Vancouver,  BC, CANADA, V7T 1A2
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
Bus (604) 980-0321=20
[email protected]
www.centa.com www.david-ingram.com
Disclaimer:  This question has been answered without detailed =
information or consultation and is to be regarded only as general =
comment.   Nothing in this message is or should be construed as advice =
in any particular circumstances. No contract exists between the reader & =
the author and any and all non-contractual duties are expressly denied. =
All readers should obtain formal advice from a competent financial, or =
real estate planner or advisor & appropriately qualified legal =
practitioner, tax or immigration specialist in connection with personal =
or business affairs such as at www.centa.com. If you forward this =
message, this disclaimer must be included."
This from "ask an income tax and immigration and bankruptcy expert" from =
www.centa.com or www.jurock.com or www.featureweb.com. Canadian David =
Ingram deals daily with tax returns dealing with expatriate:
multi jurisdictional cross and trans border expatriate problems  for the =
United States, Canada, Mexico, Great Britain, the United Kingdom, =
Kuwait, Dubai, Saudi Arabia, South Africa,  Thailand, Indonesia, Egypt, =
Antarctica,  Japan, China, New Zealand, France, Germany, Spain, Italy, =
Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, =
Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, =
Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, =
Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, American and =
Canadian and Mexican and any of the 43 states with state tax returns, =
etc.
income tax wizard wizzard guru advisor specialist consultant taxman  =
Alaska,  Alabama,  Arkansas,  Arizona,  California,  Colorado, =
Connecticut,  Delaware, District of Columbia,  Florida,  Georgia,  =
Hawaii,  Idaho,  Illinois,  Indiana,  Iowa,  Kansas,  Kentucky,  =
Louisiana,  Maine,  Maryland,  Massachusetts, Michigan, Minnesota,  =
Mississippi,  Missouri,  Montana,  Nebraska,  Nevada, New Hampshire,  =
New Jersey, New Mexico,New York, North Carolina,  North Dakota,  Ohio,  =
Oklahoma,  Oregon. Pennsylvania,  Rhode Island,  South Carolina,  South =
Dakota, Tennessee,  Texas,  Utah, Vermont,  Virginia, West Virginia, =
Wisconsin, Wyoming, British Columbia, Alberta, Saskatchewan, Manitoba, =
Ontario, Quebec City, New Brunswick, Prince Edward Island, Nova Scotia, =
Newfoundland, Yukon and Northwest and Nunavit Territories,  Mount =
Vernon, Eumenclaw, Coos Bay and Dallas Houston Rockwall Garland Texas  =
Taxman and Tax Guru  and wizzard wizardYour name has been added to our =
email list because of an enquiry we have received,  we may not answer =
your question but=20
another similar question will be as we lump them.
You may find more answers at www.centa.com
David Ingram of the CEN-TA REALTY  Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
or .   =20
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