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I am MFS in a community property state. Is it possible to use form 8958 without making income adjustments? We prefer to pay taxes and receive refunds separately.

Must our separate income be reported as 50/50, or is there some written agreement we can attach stating that our income is not community property?
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2 Replies

I am MFS in a community property state. Is it possible to use form 8958 without making income adjustments? We prefer to pay taxes and receive refunds separately.

I don't know how separate works in community property states.  But you know you might be paying more tax by filing separately?  Joint is usually better.  

 

How to file separate in Community Property states
https://ttlc.intuit.com/community/married/help/married-filing-separately-in-community-property-state...

 

Many people think they come out better when filing Married Filing Separate but they are probably doing it wrong. If one person itemizes deductions then the other one must itemize too, even if it's less than the standard deduction, even if it is ZERO!

 

And there are several credits you can't take when filing separately, like the

EITC Earned Income Tax Credit

Child Care Credit

Educational Deductions and Credits

 

And contributions to IRA and ROTH IRA are limited when you file MFS.

 

Also if you file Married Filing Separately up to 85`% of your Social Security becomes taxable right away even with zero other income.

 

See …….
https://ttlc.intuit.com/community/married/help/is-it-better-for-a-married-couple-to-file-jointly-or-...

 

I am MFS in a community property state. Is it possible to use form 8958 without making income adjustments? We prefer to pay taxes and receive refunds separately.

Thank you for the information. Married Filing Separately is still the best status in our case.

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