Still Need to Split? - Spidell

Still Need to Split?

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Message Board Still Need to Split?

This topic contains 2 replies, has 2 voices, and was last updated by Christina Carter 4 weeks ago.

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  • #177320
    Christina Carter

    I have a client who hasn’t lived with his wife for at least 5 years.  He moved to CA in 2015.  She has NEVER lived in CA or set-foot in CA.  She lives and works in NY for the UN.  They have no plans on divorcing any time soon.  They live total separate lives, including financial.

    Do I still have to complete form 8959?  the taxpayer has for years reports 100% of his income on his return.  Can I over-ride the form to allocate 100% of his wages, etc. to him only?

    Thank you in advance for all your help.

  • #177420
    Lynn Freer

    Take a look at IRC Sec. 66. Not sure it applies here. Here’s the big problem. If they have no separate property agreement, 1/2 of his income is taxable to and belongs to her as his income is community property. If they do divorce or he dies, she could have a claim to 1/2 of his property acquired during the marriage or before but maintained with his community funds. I’d look at Sec. 66 and even if it applies, they should get a post nuptial agreement.

  • #177423
    Christina Carter

    Thank you, Lynn.