- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Community Property State (Texas) - How to Put Separate Property Information on Form 8958 - MFS
Situation: Retired, older couple in Texas wanting to submit taxes as Married Filing Separate (MFS). As it was a second marriage for each partner, a prenup was completed and signed before the couple married -- specifying that there would be "no community property created during their marriage." The prenup was written according to Texas Family Law and specifies, in the 48 pages of the document, that each partner would keep their own property, income, etc., all "real and personal property," and each party in the marriage agreed to keeping everything separate with no claims on the other person's properties or financial resources. Each person has their own, separate properties, retirement, checking / saving accounts, credit cards, etc. Nothing has been combined.
The questions needing answers then are 1) how they need to prove / inform the IRS that there is no community property and 2) how to enter information into the required 8958 form to show only separate property / income information.
The couple is aware that they will lose deductions and will likely have to pay additional income tax, but do not want to file MFJ due to differences in handling of financial matters.