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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.
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
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...
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.
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