Form 8958-Allocation of tax amounts in community property states - Spidell

Form 8958-Allocation of tax amounts in community property states

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Message Board Form 8958-Allocation of tax amounts in community property states

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    • #317108
      Masood Chotani
      Participant

      Husband and wife have separate W-2 incomes and separate Schedule Cs.

      They are filing married separately. If they want to treat their W-2s and Schedule Cs separately in the allocations, can they do that? Or do they have to divide everything in half?

      Thank you.

    • #317117
      Mark Bole
      Participant

      If both are domiciled in California, then by default they are subject to community property laws, and so they must divide everything in half.  I’d guess this applies to 95% or more of California married residents.

      However, there may be any number of legal reasons why they don’t currently have a marital community, so rather than get yourself in trouble for providing legal advice, you should refer them to an attorney if they insist they are not subject to community rules, who can then provide an opinion as to the status of their marital community.

    • #317125
      Masood Chotani
      Participant

      Thank you so much, Mark!

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