@TurboTaxCaro Thank you for clarifying this confusing topic.
So, if we include half of my own and half of my spouse's income and tax withholding on the 1040, we should not enter any community property adjustments (additions or subtractions) under "other tax situations" because it would be counter intuitive from already including half of each income and tax withholding on the 1040, right?
On the 8958 worksheet/form, our taxes withheld should reflect the half each spouse is reporting from the combined total, right?
For example, my federal tax withheld is $6,000 and my husband's federal tax withheld is $8,000. On the 8958 worksheet, it should have the total amount of $14,000 in column A, $7,000 allocated to myself on column B, $7,000 allocated to my spouse on column C.
