My spouse and I lived & worked in CT & FL. Can we file 2 Federal Tax Returns :1 for each State?

Question

Re: deducting CT income taxes & FL sales taxes

Answer 1

You may elect to deduct either the sales tax, or the income tax but you cannot deduct both. Given that FL does not have an income tax you'll likely be better off deducting your CT Income tax. You should weigh this against the sales taxes and remember that you can add things likes the sales ax paid on a car, or boat... if it was purchased in 2006.

Answer 2

No, you only file one Federal return per year.

You can deduct either state income taxes paid or state sales taxes paid but not both. Add up your total sales taxes paid -- apportioned between FL and CT based on how long you lived in each state -- and compare that to the CT income taxes paid. Take whichever one is larger. FL doesn't have an income tax so that's out of the picture.

Answer 3

No...you file 1 1040 listing your income. The IRS doesn't care where you lived while making the money, as long as it was in the United States. However, you need to file separate stste returns for each state, listing how much u made in that state, where your primary residence was...etc....