Form 8958

You can use Form 8958 to split specific dollar amounts based on a pay stub instead of dividing everything 50/50. Just keep in mind, TurboTax has a few extra steps to make sure the IRS system accepts the numbers without any issues.

Form 8958 is designed exactly for this. While it is often used for 50/50 splits, it allows for manual entries.

1. The Husband’s Return: He will report his full W-2, but then use Form 8958 to "subtract" the three months of income and withholding allocated to the ex-wife. 
2. The Wife’s Return: She will report her own income plus the specific dollar amounts of the husband's income and withholding from those first three months as identified on the YTD pay stub.

TurboTax can handle Form 8958, but because the W-2 total won't match the "Taxable Income" line on the 1040 (due to the allocation), you have to be careful:

1. Reporting the W-2: Both parties should enter the W-2 information exactly as it appears on the paper form.
2. The Allocation Adjustment: In the "Community Property" section of TurboTax, you will be prompted to enter the adjustments. Instead of choosing a percentage, you will enter the specific dollar amounts calculated from the March (or 3-month mark) pay stub.
3. The IRS "matches" these forms. The husband's "Income Allocated to Spouse" must exactly match the wife's "Income Allocated from Spouse." If they differ by even a dollar, it may trigger an automated notice.