Filing taxes as "Married Filing Separately" in a community property state is complex because the IRS requires you to split all community income evenly. You can't just report your own income, you will need your ex's financial information too.
What Documents You Need:
- W-2s: To split wage and salary income.
- 1099s: For things like contract work, self employment, retirement income, interest, and dividends.
- Other income statements: This includes any other forms that report income, like Schedule K-1s from a partnership.
- Deduction information: If you choose to itemize deductions, your ex must do the same. You'll need her information to ensure you're both making the same choice and dividing deductions properly.
Can you file without all the information?
It's possible to file without all of your ex’s information, but it is highly discouraged for the following reasons:
- The income you report won't match what the IRS has from their employers and financial institutions. This will almost certainly trigger an audit or a notice from the IRS.
- Potential Relief: In rare cases where your ex is completely uncooperative and you can't get her info, the IRS offers "equitable relief." However, this is a complicated process that requires filing a specific form (Form 8857, "Request for Innocent Spouse Relief") and demonstrating you meet a strict set of criteria.
TurboTax does have a specific process for this situation. It will walk you through the allocation and generate the necessary form 8958, and here are the steps:
- You and your ex must first elect “Married Filing Separate” as your filing status: Each of you must prepare a separate tax return. You can't do both returns under one account; you will each need to create your own account and pay for your own returns.
- Enter your own info first: Start by entering all of your own tax information—your W-2s, 1099s, deductions, etc.
- Navigate to the Community Property Section: In TurboTax, search for "community property." This will take you to a special worksheet.
- Then enter your Ex's information: On this worksheet, you will input your ex's income and withholding information.
- TurboTax will then do the calculations automatically: The program will then combine your income and your ex's income, then split it 50/50. It will also generate Form 8958, Allocation of Tax Amounts Between Certain Individuals in Community Property States, which you must include with your return. This form is required to show the IRS why your reported income doesn't match the forms they received for you.
Helpful Links:
Please feel free to reach out with any additional questions or concerns you may have and
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Terri Lynn
