Adam_Taxes
Returning Member

Get your taxes done using TurboTax

I have entered in all of the forms, but TurboTax is definitely not computing the information correctly.

 

None of the information entered in the "Community Property - Wages", "Community Property - Interest", or "Community Property - Dividends" sections seem to make any difference whatsoever with how TurboTax calculates taxes.  I can change them to report that I want to split the income 50/50, or 100/0, or 0/100, and TurboTax does not change any of the computed tax numbers.  These fields simply seem to be used for informational reporting.

 

The only things that it seems to take into account is the data on the "Community Property Income Adjustments" and "Tax Withholding Adjustments" pages, and these do not provide any way to divide capital gains or dividend income.  The income adjustments simply gets used to fill line 8z on Schedule 1, which is not how the community property income division should be applied.  As I have mentioned, it is still reporting 100% of dividend income data on my return on line 3a/3b, as well as on Schedule B, and is using 100% of my income on form 8959.  On my wife's tax returns my income is incorrectly not reported in these areas.

 

On the community property income adjustment thread that @ErnieS0 linked above it sounds like the general consensus from multiple users there is that TurboTax cannot correctly handle the MFS community property split.