Filing taxes in community property states as married filing separately (MFS) can be complicated. Certain states have laws about community property defining how they expect MFS couples to share, or allocate, income.
Community property states are: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.
TurboTax has allocation screens and a worksheet to assist you in entering any adjustments your community property state may require when filing separately. For more information, refer to IRS Publication 555 Community Property.
If you're using TurboTax Online, we recommend that you transfer your return to the TurboTax CD/Desktop version. You will save time by entering less information.
Begin by completing a MFS federal tax return for you and your spouse, as you'll need the amounts for different income categories, tax amounts, and all tax payments for each of you. If one of you plans to itemize deductions, the other person must itemize as well. Otherwise, you’ll both have to use the standard deduction.
You may not be able to e-file, in which case TurboTax will guide you through the steps to file a paper return.
Entering income adjustments for a community property state
Complete the community property worksheet
