Is some of the deductilble portion of the self employ tax on Form 8958 allocated to my wife

[Robert13]

I  am filing in California a community property state and have a sole proprietorship business in addition to a salaried job that provides a w2. I am trying to figure out what items to split on form 8958.  We are filing Married but separate returns knowing there are many tax disadvantage in doing so.

Also do i enter her w2 on my 8958 as well was do I put her income on my 1040?

[JohnW15 · Accepted solution]

Based on your questions, these would both be split.

The instructions for Form 8958 state that "a spouse's or RDP's (registered domestic partner's) wages and self-employment income from a sole proprietorship are community income and must be evenly split."  [Emphasis mine.]

As for the deductible portion of the self-employment adjustment:  "The deductible portion of the self-employment tax is split only when the self-employment tax is split by the spouses or RDPs."

And later, the instructions note that "With regard to net income from a trade or business (other than a partnership) that is community income, self-employment tax is imposed on the spouse carrying on the trade or business."

If you haven't already, I'd suggest you read the instructions regarding self-employment income and tax in the link above.