topic Married filing separately in community property state, first year in Get your taxes done using TurboTax

Married filing separately in community property state, first year

pslf — Fri, 31 Jan 2020 04:18:15 GMT

Hello -- My wife and I were married this summer. We will be filing separately in a community property state. How do we calculate our income this year? Should we treat the entire year as community property since we were married status on December 31, should we prorate our incomes from the date of marriage, or take on the immense task of calculating our income (pay stubs, interest-bearing accounts) from before and after the date of our marriage to identify joint and separate money?

Any guidance, links, or referrals would be immensely appreciated -- thank you!

Re: Married filing separately in community property state, first year

KurtL1 — Fri, 31 Jan 2020 04:42:36 GMT

When filing separate in a community property state the article Five Tax Tips for Community Property States could be beneficial to you.

The IRS Publication 555 - Community Property will provide guidance when filing in a Community Property state.

Re: Married filing separately in community property state, first year

DanS1111 — Wed, 19 Feb 2020 02:46:24 GMT

I have the same question as the OP and I have read the two links you posted (plus more). I haven't been able to find a definitive answer - nothing about what you do if just married or if you transmuted separate property to community property part way through the year (which is my case).

Since everything I have read does not mention prorating or splitting community property based on the date of marriage or transmutation, I have to conclude that newlyweds who file separately must treat community property as if it was owned by both spouses for the whole year.

I'll keep searching for the answer...

Re: Married filing separately in community property state, first year

DMarkM1 — Wed, 19 Feb 2020 13:59:29 GMT

You will want to check the laws of your state for final determination, but on page 3 and 4 of Publication 555 you will find the discussion and Table 1 on the subject of community and separate property/income.

Generally, community income/property is that which is earned "during the marriage" while "domiciled in the community property state". Also, if under an agreement a property became a joint property then the date of that agreement is the start date for any community earnings. Anything outside of that is generally separate. Again you will want to check with your state taxing agency for final determination.

Re: Married filing separately in community property state, first year

Anonymous — Thu, 26 Jan 2023 22:17:59 GMT