Community income is any income earned in a community property while married.
However, you only allocate community income when filing separately which is the worse way to file. If you file jointly, as you should, then community income is irrelevant - all income from both spouses goes on the same tax return.
You misunderstand community property.
When filing seperartely in a community property state then 1/2 of each spouses community income is claimed on the other spouses income. Therefore 1/2 of your community income goes on your tax return and 1/2 on your spouses tax return and visa-versa so all the income is taxed only once, but half on each spouses tax return.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
