Thanks Kris,
Although if you go back to page one of the thread... it's a "community property" thread that many people have thrown in their particular issues.
Yes, I understand the basic idea as you explained how it is done. I've read the IRS pubs, etc. I'm required to "report" 50% of my spouse's income and she is to do the same with mine. Also, I've looked through all the TT screens on my 1040. It's confusing and Turbo Tax gives ZERO guidance on exactly what you are supposed to enter.
My question is specifically how and what do you enter into Turbo tax on each spouse's return in order to "report" it correctly and have TT work it out correctly.
You say to "enter each tax payers documents". Do you mean enter each payer's documents into ONLY their own 1040? Or both spouse's documents on both 1040's. This is where it is confusing and I've yet to see a clear answer. But this is my question... exactly which documents and on which returns. Hopefully you know the answer.
This is how I understand what should be done (per what I understand of IRS pub 555)....
For my 1040:
-- 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's 1040:
-- She enters her W2 (50% of box 1, etc.)
-- She also enters MY W2 at 50%.
Same as above for 1099's, etc.
Then in Turbo Tax "community property" section you manually distribute income and adjust things which will transfer to form 8958 to tell the IRS how ALL the income was allocated.
TT does not "automatically" calculate anything. It will populate W2 income entered and 1099 data, but using TT for community property is confusing because there is no guidance specific to MFS and community property when entering data in the "Income" section. So looking for specific guidance on how TT works and if my outline of how to complete 1040 for this situation is correct according to what the IRS is looking for on a MFS return.
Thanks for your help!!
