Just wanted to confirm I'm correctly understanding how to do the community property adjustment in the federal tax return for two individuals in a RDP in a community property state, filing as single.
Add up wages, interest income, dividends, state income tax refund, self employment income, subtract capital losses (max 3000), subtract any relevant deductions (e.g. charity contributions) across both partners and divide by 2 to determine what each partner's total income should be. Then the addition/ subtraction should be the difference between this allocated community property and the partner's adjusted gross income, correct?
