Just wanted to confirm with anyone who has done the MFJ UI exclusion for couples in community property states since we got the latest IRS update on 5/26/21. Our software (Ultra Tax) has not updated their software to give each spouse the $10,200 exclusion even if one spouse received more than that. (And from the sound of it, it doesn’t seem like our software is going to do any other updates on UI)
Example: We have one couple where taxpayer got 4,500 and spouse got 24,295. Would you add the two together and just divide by two and allocate the same amount to each spouse? 14,397.50 and 14,397.50? Or would you allocate 10,200 to one spouse and 18,595 to the other? Does it matter?
Has anyone’s software made the update for the Community Property States on the MFJ UI Exclusion?
We use CCH ProSystem fx and we are still waiting for an answer as to whether they will be making an update or not.
If anyone knows, please let us know and if anyone is using software that has already received this update, what software do you use?