Do I have to file Form 8958 Allocation of Tax in Community Property States if my status is MFS, but we fall under Spouses living apart all year case? we are inCalifornia

[viktoriyab11]

It depends.

Community Property Laws Disregarded. Relief from liability for tax attributable to an item of community income. You are not responsible for the tax relating to an omitted item of community income if all the following conditions are met.

1. You did not file a joint return for the tax year.

2. You did not include the item of community income in gross income.

3. The item of community income you did not include in your gross income is one of the following:

Wages, salaries, and other compensation your spouse (or former spouse) received for services he or she performed as an employee.

Income your spouse (or former spouse) derived from a trade or business he or she operated as a sole proprietor.

Your spouse's (or former spouse's) distributive share of partnership income.

Income from your spouse's (or former spouse's) separate property (other than income described in (a), (b), or (c)). Use the appropriate community property law to determine what is separate property.

Any other income that belongs to your spouse (or former spouse) under community property law.

4. You establish that you did not know of, and had no reason to know of, that community income.

5. Under all facts and circumstances, it would not be fair to include the item of community income in your gross income. 

For additional information, please follow the links

Publication 555. Community Property  https://www.irs.gov/pub/irs-pdf/p555.pdf 

Married Filing Separately in Community Property States https://ttlc.intuit.com/replies/3301943

[wegolfers]

Sorry, I'm pretty sure this response did not answer the question.  I have the same question that no one can seem to answer (yet).  This is not a matter of asking/confirming whether we meetithe MFS Spouses Living Apart All Year (MFS SLAAY) - we already understand that and know we meet the full criteria (with at least one having domicile in a community property state). 

The real, separate, question still frustratingly remains:  "If we fully meet the MFS SLAAY criteria, do either one of us, or both of us, still need to bother to complete and submit the 8958 or not?"  It seems odd to complete the 8958 with "$0" (plus or minus) adjustments in any area.  

Accurate direction or precedence please...thanks...

[DaveF1006]

It depends. Publication 555 states that if you meet all the MFS SLAAY criteria, you may report your income separately as it is illustrated ion page 9 of the publication. You would need to still report this on a 8958 but you do not need to allocate all income 50/50. 

As odd as it may seem, you would put a "0" in the adjustment section.