Message Board › Community Income Treatment – Married Mid-Year
- This topic has 3 replies, 2 voices, and was last updated 1 week ago by Mark Bole.
May 4, 2021 at 1:58 pm #301769Bruce TylerParticipant
Hi everyone —
I may be knit picking but wanted to put this out there….
Couple gets married on July 1. Generally, I would treat income and deductions from January 1 to June 30 as separate and treat income/deductions from July 1 to December 31 as community.
Hmmm….. we all know that a couple is “considered” married for the entire year whether they marry on Jan 1 or Dec 31. Should I be treating all income and deductions as community even though the couple got married mid-year but are “considered married” for tax purposes for the entire year?
I really dislike that these things get into my head. Looked and looked through the pubs and could nto find anything.
Your help is appreciated. Thank you.
Bruce Tyler, EA
May 4, 2021 at 3:14 pm #301784Mark BoleParticipant
I think you are confusing the law that dictates federal tax filing status with the state law that dictates community property treatment. I’m pretty sure CA law looks to when the marital community starts (and ends, if applicable) based on actual calendar dates, not some unrelated federal tax law. The feds simply accept what state law dictates when it comes to recognizing community property & income.
May 4, 2021 at 4:28 pm #301810Bruce TylerParticipant
Thanks for your reply — The issue is not filing status as I am aware that if a couple marries on Dec 31 at 11:45 pm, they are considered married for the entire year for tax filing purposes.
My question has to do with the splitting of community income – i.e. the determination date of when splitting community income should begin – that being dictated by state law.
On the surface, this would seem to be the date the couple got married (in some cases, the day after) – but since the couple is considered “Married” for the entire year for tax purposes, no matter what date they officially got married, I am wondering if all income for the year would be considered community income.
Logic tells me no — that community income begins when the couple are a “community” under a legal marriage. Just wondering if I’m missing something or if I’m just letting my head get the better of me .
Bruce W. Tyler, EA
May 4, 2021 at 4:46 pm #301811Mark BoleParticipant
I guess my previous answer wasn’t clear. The community property treatment begins when state law says the marital community begins. Has nothing to do with the federal date used for determining filing status.