Yes. This information comes from the tax return and can be completed based on whether you are in a community property state or not. TurboTax completes most of the entries, but here are further instructions for you on areas you can change to your advantage based on the laws for your state.
Line 13: Income does have to be entered under the spouse who earned the income (or split evenly if in a community property state).
Line 14: Adjustments to income are taken from that section of the tax return (you may not have any). If you do have any, apply them to the spouse who they belong to based on the earnings.
Line 15: If the injured spouse has all the income, take all of the standard deduction (let the IRS adjust it if they want to when they get the form).
Line 16: Put all the exemptions under the injured spouse if the other spouse has not income. If the other spouse (the one with the debt) does have income put only one exemption under that spouse.
Line 17: Enter all credits from that section of your tax return under the injured spouse (if there are any besides earned income credit).
Line 18: If you don't have this, you can ignore it. If you have this, it may be self employment tax. Put that under the spouse who had self employment income, if applicable). If you are using TurboTax Free, you do not have this.
Line 19: Enter the federal withholding for each spouse from their W2s. If you don't have any leave this blank. You are considered to have payments (federal withholding) on the tax return if you do have the earned income credit. Just be sure you answer yes to that question (Part 1, question 6)
Line 20: Any other additional payments made to the IRS for your tax. Money you paid on your own or withholding from other documents that are not included in line 19.
Below you will find other tips that may be useful.
Allocate as much as possible to the injured spouse based on the criteria below. It really depends on whether you live in a community property state or not.
- If you do not in a community property state, and both of you have income, you can divide exemptions and deductions up any way you see fit. Enter most of the deductions under the injured spouse. It is possible the IRS may make some adjustments based on the income levels for each of you. Let them do that when they receive it.
- If you do live in a community property state, community income would be split equally between the two spouses. With respect to deductions, the deductions would be split depending on whether the expenses related to community income or separate income.
- There are nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.
- Alaska is an opt-in community property state that gives both parties the option to make their property community property.
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