Unemployment Compensation Taxation for a Married Couple...
We are married in a community property state filing jointly and our AGI is less than $150k. Since we live in a community property state, CA, can we both exclude our share of the $10,200/individual tax exemption if only one of us had unemployment compensation since her benefit is considered community property and split equally between us? Note - I was not unemployed. Your thoughts?
If you file a Married Filing Joint return, when completing the worksheet, you should report half of your unemployment compensation and half of your spouse's unemployment compensation on line 8 of the worksheet and your spouse reports the other half of your unemployment compensation and half of his or her unemployment compensation on line 9 of the worksheet. If your joint modified AGI is less than $150,000, you and your spouse can exclude up to $10,200 each. Do not exclude more than the amount of unemployment compensation you report on your Schedule 1, Line 7.
