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Yes, she has to report half your income and half your deductions.  

Technically, she reports half the community income.  Your income from working while you are married is income of the marital community, but if you or she has income that is not from the marital community (like investments that you owned before the marriage) that is probably separate income and does not need to be divided.  But it depends on the laws of your state.

Why do you want to file separately?  That results in higher taxes and lower refunds for most couples.  If you are trying to file separately to qualify for student loan payment reduction (IBR), you will see that the income splitting rule in community property states causes more problems than it probably solves.