Okay, the main reason for my confusion is that the IRS states that each spouse must "report" 50% of community income. All "reporting" is done on the 1040. The 8958 is informational only as I understand it. It tells the IRS how you calculated the amounts you "reported" on your 1040.
But what I understand you to say is... when MFS in community property state each spouse fills out their own 1040 basically as if they were single. They enter their own W2's, 1099's, etc. with the exact amounts on those forms. I agree it makes sense that the IRS is wanting to see that the numbers match.
So, each spouse fills out their own 1040 as indicated above and then in Turbo Tax each spouse uses the "community property" section to add W2 and other income from the other spouse, allocate each spouse's income 50/50 in the columns, and make adjustments accordingly which populates to the 8958.
Then Turbo Tax will make an income adjustment to your actual 1040?
This is what I understand you are saying. Is that correct?
If so, can you tell me... where/how on the 1040 is this adjustment to income (calculated on the 8958) reported? Which line and/or schedule?
Thanks!
