sethb[at]panix.com (Seth Breidbart) wrote:
- quote -

Sorry, no <G> . In the first place, HIS domicile remains in
NY, a separate property state, so HIS compensation is still
his separate income.

If NY were a CP state, then half of his compensation would
belong to the wife. However, it is NY source income (from
services performed in NY) and therefore taxable in NY,
either on a joint return or on her MFS nonresident return.

Katie in San Diego

The foregoing is intended for educational purposes only and
does not constitute legal or professional advice.

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Katie Jaques <katiej_1958[at]yahoo.com> wrote:

- quote -

Would the converse hold: half of his income is community
property, belonging to her, and therefore not reportable on
his MFS return?

Seth

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jukebaks[at]yahoo.com (jukebaks[at]nomail.com) wrote:

- quote -

A lot depends on the detailed facts of your situation. Just
bear in mind that if your wife has established domicile in
Texas (abandoned her home in NY, established a new place of
abode in Texas, and intends to remain in the new place
permanently or indefinitely), then her income is subject to
Texas community property law and half of it belongs to you
and would be subject to NY tax (and reportable on your MFS
tax return) because you are a resident. (This probably
would not be true if you and your wife have separated with
no intention of resuming the marital relationship, and are
not just living apart due to work requirements.) I haven't
heard of NY pushing this issue, but other separate property
states certainly have done so (e.g., Oregon).

On the other hand, if your wife is still domiciled in NY,
then she is a resident there unless she did not maintain a
place of abode there (which she probably did, your place)
and did not spend more than 30 days of the taxable year in
NY.

There is no Texas consequence to any of this, of course,
because Texas will never have an individual income tax as
long as there remains a breathing Texan <G> . And Texas will
give you a certificate of domicile or residence for the
asking. Not that NY will necessarily pay any attention to
that <G> .

Katie in San Diego

The foregoing is intended for educational purposes only and
does not constitute legal or professional advice.

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"jukebaks[at]nomail.com" <jukebaks[at]yahoo.com> wrote:

- quote -

Your wife might possibly be a non resident for NY, if she
lived in Texas. Check the instructions to see if she
qualifies to be a non resident of NY. If so, then her income
isn't subject to NY income tax. I think you then would be
married filing separate for NY purposes.

But be careful, she could be considered a resident in both
states. In that case, all of her income is included in the
NY tax return.

Don't know enough about Texas tax law to comment on how that
end of the situation will work.

--
<<< Benjamin Yazersky CPA [NJ & NY] > >
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I'm a resident of NY and subject to its state income tax. My
wife and I have always filed jointly. For 2003, she has
taken residency and employment in Texas. I'm thinking we'll
continue to file jointly. How should I report her Texas
income? Is it going to be subject to NY state tax?

Any advise would be appreciated.

Thanks.

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