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New Member
posted Jun 6, 2019 5:26:17 AM

How do I calculate the Tax Withholding Addition/Subtraction Adjustment amounts for community property?

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1 Best answer
New Member
Jun 6, 2019 5:26:19 AM

If you live in a community property state, you will generally split it all 50/50. Some states have specific rules regarding the split, but most community property states follow the 50/50 rule.  The exception would be income earned on assets or investments that were owned by a spouse prior to the marriage and not commingled. Also, inherited income that was not commingled. 

For Example; You earned $100,000 of income and your husband has $60,000. Jointly you have $160,000 and in a Community Property State you each have $80,000.00. So in this case you will have subtracted $20,000 to your income and your husband would have added $20,000 to his

Community Property states are: ArizonaCaliforniaIdahoLouisianaNevadaNew Mexico, Texas, Washington, and Wisconsin.

FYI - When you file as Married Filing Separately, if one spouse itemizes on Schedule A, the other must also itemize on Schedule A.


7 Replies
New Member
Jun 6, 2019 5:26:19 AM

If you live in a community property state, you will generally split it all 50/50. Some states have specific rules regarding the split, but most community property states follow the 50/50 rule.  The exception would be income earned on assets or investments that were owned by a spouse prior to the marriage and not commingled. Also, inherited income that was not commingled. 

For Example; You earned $100,000 of income and your husband has $60,000. Jointly you have $160,000 and in a Community Property State you each have $80,000.00. So in this case you will have subtracted $20,000 to your income and your husband would have added $20,000 to his

Community Property states are: ArizonaCaliforniaIdahoLouisianaNevadaNew Mexico, Texas, Washington, and Wisconsin.

FYI - When you file as Married Filing Separately, if one spouse itemizes on Schedule A, the other must also itemize on Schedule A.


New Member
Jun 6, 2019 5:26:20 AM

For RDP in Nevada do we do the 50/50 split same for "Tax With Holdings"  My RDP reported $9000 in federal taxes paid on his W-2. I paid nothing in taxes on my 1099-misc. So do i add half his taxes withheld at $4500?

New Member
Jun 6, 2019 5:26:22 AM

How do you figure out the amount to adjust your withholdings?  We get the 50/50 rule.  This answer doesn't answer the question asked.

New Member
Jun 6, 2019 5:26:23 AM

Is this amount based on AGI or gross income?

New Member
Jun 6, 2019 5:26:25 AM

Answer does not address the question.

New Member
Feb 6, 2023 3:45:59 PM
Returning Member
Mar 8, 2023 11:42:51 AM

This IRS manual may give a principle to consider on this question (I am not a tax lawyer -- so consult a tax attorney to be sure what applies to your situation).

25.18.1.2 (03-04-2011)  Property Rights and Federal Taxation


Federal law determines how property is taxed, but state law determines whether, and to what extent, a taxpayer has "property" or "rights to property" subject to taxation. Aquilino v. United States, 363 U.S. 509 (1960); Morgan v. Commissioner, 309 U.S. 78 (1940). Accordingly, federal tax is assessed and collected based upon a taxpayer's state created rights and interest in property.

25.18.1.2.4 (03-04-2011)  Tax Assessment and Collection under Community Property Laws


For income tax purposes, if spouses file separate returns, each spouse is taxed on 50% of the total community property income regardless of which spouse acquired the income. Poe v. Seaborn, 282 U.S. 101 (1930). In addition, each spouse is taxed upon 100% of his or her separate property income. Community property may also affect basis in property.


Source: https://www.irs.gov/irm/part25/irm_25-018-001