- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
Yes, we are here when you need us.
Both Nevada and California are "Community Property States"
and that means that income from either spouse (after marriage) is income of both spouses.
Property you each had before marriage is still your own.
For example, if one spouse earns a 70,000 income and the other earns 20,000, together they earned "Community Income" of 90,000.
If the wife had a rental property before marriage, that property and the rental income it produces is hers alone. Let's say that brings in 24,000.
This does not complicate anything UNLESS the couple wish to file Married Filing Separately.
When a married couple living in a Community Property State (or married in one) wish to file separately, they do not simply report his income on his return and hers on hers. (Same for same-sex couples in certain states) They need to SPLIT COMMUNITY income, expenses and credits.
They also need to follow the other Federal requirements, such as each Itemizing or each taking the Standard Deduction.
So in the example above, if filing separately, they would each claim 45,000 "Community Income" and she would also claim the 24,000 rental income.
Yours is an interesting situation, I suppose he would need to file for California as a non-resident if he needs to claim Californian income.
**Mark the post that answers your question by clicking on "Mark as Best Answer"