Married filing separately in community property states
Filing taxes in community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin) as married filing separately (MFS) can be complicated.
Certain states have laws about community property defining how they expect MFS couples to share, or allocate, income. TurboTax has allocation screens and a worksheet to assist you in entering any adjustments your community property state may require when filing separately.
Begin by completing a MFS federal tax return for you and your spouse, as you'll need the amounts for different income categories, tax amounts, and all tax payments for each of you. If one of you plans to itemize deductions, the other person must itemize as well. Otherwise, you’ll both have to use the standard deduction.
You may not be able to e-file, in which case TurboTax will guide you through the steps to file a paper return.
First, use your community property state rules to determine what adjustments you expect to enter in TurboTax. Often one return has an addition to income and withholding, while the other will have a reduction (subtraction) to income and withholding.
Sign in to TurboTax and select Take me to my return.
Click and search for community property.
Click the Jump to link in the search results.
On the Community Property Income screen, select Yes and follow the instructions to enter any income adjustments.