Today TaxMama® hears from Dustin in the TaxQuips Forum, who has a very reasonable question. (Let me paraphrase.) “I live in Idaho and just got a construction job in Nevada that will last two years. My wife wants to stay in Idaho near her doctor during her pregnancy. What’s the best way to handle the state residency tax issues?”

Dear Dustin,

It appears that you are the principal earner in the family. Since this is clearly not a short-term project, you won’t be able to get the benefit of the travel expenses to a temporary job.

So, establish yourself as a Nevada resident and file your federal tax returns using the Nevada address. You can file a non-resident return in Idaho, with your wife as a resident.

Both Nevada and Idaho are community property states. So, on the Idaho tax return, your wife’s column must show half your income, relevant expenses and deductions.

Mike Reed, EA provides another suggestion. Call the insurance company and ask if there would be a problem if you and your wife live in Nevada and use the doctor in Idaho. After all they are neighboring States. A friend of his did something like this and it worked out just fine.

And remember, you can find answers to all kinds of questions about state tax filing and other tax and business issues, free. Where? Where else? At www.TaxMama.com.

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