Do not be concerned about the entries not specifically matching the various 1099s. Please refer to details provided by @ReneV4 and posted below for you and in this link.
- Go back to the Community Property section in both returns and remove the plus/minus adjustments you created so that your adjustment line on your 1040s are $0
- Next, manually split the income sources
- For every 1099-DIV, 1099-INT, and 1099-B, divide by 2
- Enter 50% of the dividends/gains on your return and 50% on your spouse's return
- Enter both W-2s on both returns, but only input 50% of the values for Box 1 (Wages), Box 2 (Federal Withholding), etc.
- Note: Keep Social Security and Medicare boxes (3–6) matching the original W-2 for the person whose name is on the form
- Use Form 8958 to reconcile, since your entries won't match what the IRS received from the banks/employers
- In TurboTax Desktop, go to Forms Mode and open Form 8958
- List the full amount in the "Total" column and show the 50/50 split between Spouse A and Spouse B to tell the IRS, "The 1099-DIV says $1,000, but because of CA law, I am only reporting $500."
Since rents must be reported equally between you, then the expenses should be split as well. However, see the note below if only one of you owns the property.
Income from separate property.
In some states, income from separate property is separate income. These states include Arizona, California, Nevada, New Mexico, and Washington. Other states characterize income from separate property as community income. These states include Idaho, Louisiana, Texas, and Wisconsin. IRS Publication 555
@i66d
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