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April 14, 2025
Question

Husband lives in Illinois, Wife lives in Delaware.

  • April 14, 2025
  • 1 reply
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Husband lives in Illinois.  Wife lives in Delaware but works for Illinois company.  When filing Delaware state, why is husbands income being included.

 

1 reply

AmyC
April 14, 2025

If you are filing a joint return as a resident, all income will be taxed. You can file MFS for DE to claim just your resident income with a credit for the tax paid to IL on the same income.

 

You get credit for the lower state tax on the lowest taxable amount.

  • Each state calculates taxable income differently. 
  • Each state has its own tax rate/ system.
  • You get the lowest of both categories as a tax credit.

See  How do I prepare a joint federal return and separate state

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