Hi,
I have a peculiar case and need your opinion here
1) I am staying & working in MN and make close to $60,000
2) My wife is staying & studying in WI and she has an on-campus job, earning close to $10,000.
So basically our state of residence is different and so is our tax bracket. So I am not sure whether I should be filling jointly or seperately.
If I am filing jointly, I would end up paying a lot of state tax to WI.
We do not have any student loan, however I am supporting her tution fees and I suppose that would be taken into account irrespective of whether we file jointly or seperately.

Thanks,
Madhu

You should have your CPA file a Federal Joint Return, and Marrried Filing Separate for both WI and MN.

I suggest the following you should be filing as a MN Resident and your Wife as a Non-Resident for MN purposes; and your Wife should be filing as an WI resident and you as a Non-Resident for WI purposes.

You would not be penalized on the federal return, and you would be entitled to the Tuition Deduction, and subject to income limitations may even get a Tuition Tax Credit as well on the Federal Tax Return. There is no tax credit that I am aware of on the State Tax Returns.

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