What is community property? We just married on new years eve but want to file separately because it benefits us more.

[SweetieJean]

Profanity is not permitted on this forum. And we are just trying to help you.

[sorogphi]

BECAUSE THAT WAS SOOOO HELPFUL, she wasn't even trying to answer my question. I think we are all adults and Im sure help feelings are just fine.

[xmasbaby0]

Sorry--that was snarky.  We are trying to help you though and you are clinging to filing separately against all advice to the contrary.

[vernonnjoi]

Texas is community property unless the taxpayers have a valid pre or post nuptial agreement opting out of the community property system. All items of income, withholding and expenses are generally split 50/50. Certain income such as pensions, IRA distribution, RR retirement are not subject to community property splitting nor is any withholding from those items. They are considered separate property. Income from partnership or s corps is also community property, as is self_ employment income though the self employment tax belongs to whoever earned it...ownership interest of the entity may be separate property depending on the facts. Be careful if you do a married separate return in Texas. If not correct it will trigger an audit. If this happens, in an audit a person can request innocent spouse relief per Section 66(c) as discussed in Rev Proc 2013-34.  Check the Pub.

[SweetieJean · Accepted solution]

Okay, TX is a Community Property State.  You have to split your incomes, withholdings etc  50/50. For example:

Husband wages   $50,000

Wife wages            10,000

                               60,000

So you each claim $30,000 on your respective MFS returns.

[sorogphi]

Yes, thank you! I just didn't understand what they were wanting.

[SweetieJean]

The Child Tax Credit is reduced to half ($500) of the amount of a joint return. Be sure you are filing as MFS, not Single.

[sorogphi]

I am, I have checked it multiple times.