@tbxavier, first I'm glad to know that it's not just me. Based on how (I believe) TT wants you to complete this form, there is no missing information. What's key here is that on Spouse 1's return, you are ONLY splitting Spouse 1's W2. So on the 1040, TT only shows splitting of Spouse 1's W2. However, Spouse 1's 8958 will contain Spouse 2's W2 info but TT DOES not carry over this info into the 1040. So Spouse 1's 8958 will have the following:
- 1 Wages (each employer)
- Company A: A=$60,000. B=$30,000. C=$30,000.
- Company B: A=$40,000. B=$20,000. C=$20,000.
- 11 Taxes Withheld
- Spouse 1: A=$15,000. B=$7,500. C=$7,500.
- Spouse 2: A=$7,000. B=$3,500. C=$3,500
Again, Spouse 2's info from 8958 does NOT carry over into the 1040. Confusing! It might just be used as a reference for the IRS when reviewing Spouse 2's tax return.
The only sections in TT that update the 8958 AND 1040 are below:
- Wages and Income
- Community Property Income Adjustments
- Tax Withholding Adjustments
The other community property sections update the 8958 but DO NOT update the 1040:
- Community Property - Wages
- Community Property - Other Miscellaneous Items
- Enter Your Spouse's Community Income
This might not be an exhaustive list of sections but that's what I've found.
Recap:
- TT Method
- 1040 splits Spouse 1's W2 only on Spouse 1's return.
- 1040 splits Spouse 2's W2 only on Spouse 2's return.
- 1040 on Spouse 1's return will show $30,000 income and $7,500 withholding for each.
- 1040 on Spouse 2's return will show $20,000 income and $3,500 withholding for each.
- Adjustments recorded on Lines 8 and 25C of 1040
- 8948 - Shows both Spouse 1 and Spouse 2's W2 info
- My CPAs Method
- 1040 splits Spouse 1 and Spouse 2's COMBINED income on Spouse 1's return.
- 1040 splits Spouse 1 and Spouse 2's COMBINED income on Spouse 2's return.
- 1040 on Spouse 1's return will show $50,000 income and $11,000 withholding for each.
- 1040 on Spouse 2's return will show $50,000 income and $11,000 withholding for each.
- Adjustments recorded on Lines 1 and 8 of 1040
- 8948 - Shows both Spouse 1 and Spouse 2's W2 info
