Husband and wife now residing in separate States

[Cherylle]

My client and her husband usually file a joint tax Federal and Hawaii State tax return. Both are now retired. They have a rental property in a Single-member LLC (Michigan) wholly owned by a Multi-member LLC (Hawaii) of which they are both members. Last year the husband moved to Michigan to look after his elderly father and became a Michigan resident.  His wife remains in Hawaii as a Hawaii resident. Can they still file a joint Federal Tax return? What would be their filing status?

[IRonMaN]

Unless they filed for divorce along the way, they are still married which means they can file a joint return.

[Cherylle]

Thanks and how would they file State Tax returns?

[IRonMaN · Accepted solution]

The same, unless filing separate is an available option and more beneficial in the two states.  

[Cherylle]

Thank you

[IRonMaN]

You betcha!