For the community property income adjustment, how should this be calculated for different types of income?
e.g. say
- My W-2 wages are 100,000
- My wife's W-2 wages are 50,000
- We have 10,000 of long term capital gains income reported on a 1099 under my name
- We have 5,000 of dividend income reported under my name
- We made 10,000 in mortgage interest payments reported on a 1098 in my name
How should all of this be reported simply via the community property adjustments? If I report a community property income adjustment, it looks like this applies to line 8z on Schedule 1, but it looks like dividend income on form 8960 is still calculated using the full account for my tax return, rather than half of the amount. (Even after reporting that the dividend income should be split 50/50 on the community property worksheet.)
Other forms like 8959 also look like they are being computed on my return using just my W-2 numbers, rather than half of our combined numbers.
