Trying to clarify all answers in this thread... and what I've read...
So, MFS in community property state... I have a W2 and my wife has a W2...
IRS says I must "report" half of all community income on my return and my wife must do the same on her return. Which I take to mean this...
-- On my 1040 return I enter my W2 but only 50% of box 1 and 50% of federal withholding
-- I ALSO enter my Wife's W2 on MY return but only 50% as I did for my W2.
My wife does the same on her 1040 return... entering BOTH my W2 and her W2 (each at 50% of actual box 1 amount).
Then we each fill out the 8958 and the IRS reconciles the total income between the two 1040 returns.
Is this correct?
