Deductions & credits

@PutThatCookieDown This was key information. So if I understood right from taxslayer and you, here are the steps assuming 2 W2s for John and Jill

John's MFS fed return

1. Add both John and Jill W2 to the software.
2. For each W2, don't change employer information but divide only Box 1 and Box 2 by half (i.e 50%)
3. Keep other boxes for John's return as in and the other boxes for Jill's empty 
4. Divide other community deductions and credits by half as well

Do the same as John above but with John and Jill exchanged in the points above

Fill out  Form 8958 and attach to the both returns.

Questions
1. TuroboTax a a screen which says community property addition and subtraction which affects the tax return. From the aobe I qould assume to leave that blank.
2. The following screen shows the entires to fill out in 8958 which should be taken care of automatically.

3. What should I do here for state? Does turbotax handle this automatically? Also, should i send 8958 to  California state as well if I file manually?