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Anybody know if it is OK in Kentucky for a married couple to file separate even though they filed jointly for the federal return?

I am a 2002 full-year resident of Ohio. (Ohio does require a joint state return if the couple files their federal return jointly.) My wife and I married in 2002. She moved from KY to Ohio in March 2002, and has income in both states. I only have income in Ohio.

Here is my plan:
1. File jointly at the federal level. 2. File jointly in Ohio, but designate "part-year resident" and calculate the out-of-state credit for my wife's KY income. 3. File a KY return for my wife as "married but filing separately" using the KY part-year resident form. Of course, I won't have a Kentucky return.

Sound good?


I'm not familiar with either KY or OH tax rules. However, I have often heard that it is better for OH resident couples to file "married filing separately" rather than "married filing jointly". The savings on OH income taxes is greater than the extra tax imposed at the federal level. (You have to use the same filing status for OH as you use for federal.) You should probably run the numbers both ways to see which is best for you.

Ira
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