Please explain: "Since you're in a registered domestic partnership in California, the law requires you to prepare at least three federal returns."

[yamavin]

Hi. I'm confused whether California RDPs are able to split social security benefits when we file our federal income taxes.  Since California treats social security benefits as community income, the IRS publication " Answers to Frequently Asked Questions for Registered Partners and Individuals in Civil Unions" answer to question Q14 says generally social security benefits are also community income for federal income tax purposes if treated the same under state law.  At the same time, IRS 25.18.2.2 (2)j. states Social Security Benefits are by law deemed to be separate property.  

For the past 3 federal income tax filings, I have not been splitting social security benefits.  What is your interpretation of what is allowed for CA RDP social security benefits income splitting for federal tax filings?  Our federal income tax liability would be much lower is we were able to split this income between us.

Please help.  Thanks!

[RobertB4444]

If you are in an RDP you are not recognized as married for federal purposes.  So you have to put the income on your own returns.  

In a community property state like California, each member of an RDP will fill out federal form 8958 and split their income using the community property formula.  That includes Social Security in California (in other states the state definition of community property is applied). 

So, yes, you can split your social security (and any tax withheld) with your partner. 

@yamavin 

[Edited 02/18/23 01:53 PM]

[yamavin]

Yes, we are filing federal income taxes separately. My question is whether i can split half of my social security benefit to my partner's filing and report half of my partner's social security benefit. Is this possible? Thanks!

Vincent 

[Opus 17]

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@yamavin wrote:

Yes, we are filing federal income taxes separately. My question is whether i can split half of my social security benefit to my partner's filing and report half of my partner's social security benefit. Is this possible? Thanks!

Vincent 

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The problem is that California is one of a few states (6, I think?) that recognize domestic partnerships and also have community property.  That means that, while you must file your IRS returns as single (or maybe head of household if you have a qualifying dependent), you must prepare those individual returns using community property rules.  That means that you must report half your partner's income and your partner must report half your income, assuming it is community income.  (Some income might not be community income, such as if you have a rental property that only you owned before you registered as DPs.)

So it's not the domestic partnership by itself that causes problems, it's the DP plus the community property rules. 

There are other experts on this board who know more about California's somewhat complicated filing rules.  You might also want to check with a qualified tax preparer in California. 

[psilly0]

THIS IS A BUG IN TURBOTAX 2022

my spouse and I have been in a RDP since its was legal for opposite sex on jan 1 2020. For 2020/2021 tax returns I filed separate Federal Taxes returns then field a married for the state. However this year when I tried to to do the same exact thing I for my STATE only refund I get this error at the end.

This is a BUG, it shouldn't matter if I want to file only my CA return as I was able to do this in previous versions even before my RDP, going back to 2007 I was using turbo tax and was able to file my returns at separate times from separate files. So currently this is a BUG and you should really fix it; or you product is flawed... HOW TO I BYPASS FEDERAL RETURN. 

[psilly0]

PROOF THAT ITS A BUG

as you can see on my screen shot. The right side shows the 1st FEDERAL Return file accepted. However the 2nd file which is intended just for California RDP, says I haven't filed the return. THIS IS A BUG THAT WAS NEVER IN ANY PREVIOUS VERSION OF TURBOTAX. THIS IS FALSE ADVERTISING ON TURBOTAX's BEHALF AS THEY SAID I WOULD BE ABLE TO FILE CALIFORNIA TAXES LIKE THIS.

[psilly0]

So I found some what of a workaround. However now I feel like I will get audited... 

The trick is after you have filed your federal return. You must save and duplicate the file (on Mac click turbotax file > Duplicate. On windows you can do CTRL + C on the file and CTRL + V to create a copy in the same directory) Once you do this be sure to rename it not to be confused. 

Next open the new file and change it; there are certain fields that will not match your 2021 return. However I had the same CA refund amount. So I just filed it.

lately every year I have been using turbo tax that is some bug that is new that enrages me to the core. this will probably be the last year I use turbotax. As it has become trash software.

IF I GET AUDITED ITS YOUR FAULT TURBOTAX 

[Opus 17]

@psilly0 

This is not a bug.  Since 2016 or so, it has been required that you can only e-file a state return if you also e-file a federal return at the same time.  This is a security procedure to prevent e-filing of fraudulent state returns.

In your situation, where it is necessary to file separate federal returns and a joint state return, you must prepare 3 Turbotax files.  One of those files is a joint federal plus state return, where you discard or ignore the joint federal return and file the joint state return.  For the security reason described, that joint state return can't be e-filed. 

[aaronl73]

So my partner and I filed our federal returns separately. We each then made a mock "married filing separately" federal return for our state taxes. When I printed mine to mail, mine said to include my federal return. Does anyone know if that would be the one I actually filed with the IRS or the mock one used to create my state tax return?

[Opus 17]

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@aaronl73 wrote:

So my partner and I filed our federal returns separately. We each then made a mock "married filing separately" federal return for our state taxes. When I printed mine to mail, mine said to include my federal return. Does anyone know if that would be the one I actually filed with the IRS or the mock one used to create my state tax return?

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If you are filing a joint state tax return, include the joint federal return that goes with it. 

[aaronl73]

So we are filing our state taxes separately. Do I include the mock federal return that printed out with my CA state return? Or do I include the federal return I filed as single?

[cookinmel]

Thats weird because I was able to file the 2 federal returns by e-filing and then I was also able to e-file the state return as well for a domestic partnership return last year (2021 return).  So I find it strange that I can't do it this time as well.  I followed all the same things I did last year.

[CMcG]

It doesn't look like my partner & I can do this because I had a small business in 2022 & have a schedule C. Are there any plans to change this? I don't remember having to mail it last year. 

[CMcG]

So we are to file the mock return with the state return then??? Turbo Tax employees can you please respond. 

[MonikaK1]

This older TurboTax tips article on RDP still has some good information.

Regardless of what state you live in, each domestic partner prepares a separate federal return based on the Allocation Worksheet that you attach to it. You might consider including an explanatory note to remind the IRS of your situation.

The creation of a “mock” federal return that reflects joint-filing status is just to get the numbers you need to fill in the sections of your state return that use numbers from a "married filing jointly" federal return. This ”mock” federal return never goes to the IRS; you submit it with your California state return.

See here for California FTB information on married or RDP filing separately.