It depends. Different community property states have different laws. In California, wages are community property income so you would each claim half. See this FTB webpage for more information regarding California's tax treatment.
First, use your community property state rules to determine what adjustments you expect to enter in TurboTax. Often one return has an addition to income and withholding, while the other will have a reduction (subtraction) to income and withholding.
- Sign in to TurboTax and open or continue your return.
- Search for community property and select the Jump to link.
- On the Community Property Income screen, select Yes and follow the instructions to enter any income adjustments.
If community property law does apply to you, the IRS suggests married couples in community property states look at their tax situation under both joint and separate filing options to determine which version saves them the most. You can do this in TurboTax by creating different return scenarios without filing.
Filing a joint return may be less complex and qualify you for tax credits. Filing separately depends on your situation and how your itemized deductions stack up against the standard deduction.
When you live in a community property state and file separate returns, you generally each must report 50 percent of your spouse's income and half of the income generated by community assets, plus all of your separate income. The IRS has an allocation worksheet to simplify your calculations in Publication 555 Community Property. You also have to decide who will claim dependent children.
Please see this TurboTax tips article and this help article for more information.
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