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Get your taxes done using TurboTax
No. You need to stick with the original plan. File separate returns federal, CA and MN. The FED and CA will be with community property adjustments on yours and spouse's separate returns. In the Desktop version for your separate returns for FED use the "Search" and enter "Community Property" then select the "jump to" link.
You will be asked to enter the income adjustment "Addition" for you and "Subtraction" for your spouse. The adjustments will go to line 8z on schedule 1 which flows to line 8 on the 1040. The only other change that will affect calculations is the "Withholding" adjustment, if you choose. Any withholding adjustments go to line 25c on the form 1040 and will not allow your returns to be e-filed. These adjustments flow to your CA returns automatically.
The rest of the entries there are just support allocations that do not affect calculations. The net change due to the allocations, if any, should be what you enter as the adjustment amount. Line 1a for your W2 income should remain the same as entered from your form W2 as would all the other lines and entries. Only the plus/minus in line 8z and/or the withholding line 25c should change.
For MN as I mentioned before, you will create a "Mock" separate federal return that only has your income without the community property adjustments. This will allow your separate MN return without your spouse's income. She will not have a MN filing requirement.
As you discovered if you attempt joint returns both incomes will be on all returns.
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