Where is "community property income" section in Tu...
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rybird88
Returning Member

Where is "community property income" section in Turbo Tax?

I'm using TT online. I open my return, search "community property", the results display "jump to community property link", I click it, but it does not go to the "community property" form or section. TT support articles say this section exists and TT can handle it, but I can't access it.
6 Replies
BillM223
Employee Tax Expert

Where is "community property income" section in Turbo Tax?

What is your filing status? Like you, when I clicked on the jump-to link, the software went someplace odd...however, after I changed the filing status to Married Filing Separate, the link worked perfectly.

 

So what is your filing status?

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rybird88
Returning Member

Where is "community property income" section in Turbo Tax?

Hi Bill, 

 

My status is married filing separately. I had this status chosen from the start. I even tried changing it to "Joint"... saving and then changing it back to MFS. But I'm still directed to an unrelated page when clicking the "jump to community property link. Not working. Frustrating.

 

So, this Community Property page that displayed for you... what does it do or ask?

 

Does it direct you to add your income at 50% and also add your spouse's income at 50% (W2's, etc.)?

 

Is it Form 8958? 

 

Thanks for your help!

 

 

DaveF1006
Employee Tax Expert

Where is "community property income" section in Turbo Tax?

Yes, and the answer is yes to all of your questions. First of all, if you live in a community property state(s) of Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin then you are required to file a 8958 in your return.  Here is the best practice in Turbo Tax.

  1. Log into Turbo Tax or open your software
  2. Choose one of the options to pick up where you left off
  3. Go to the magnifying glass with the search bar at the top right, and type in 8958.and then press continue
  4. Choose the link that says Jump to 8958,
  5. This is where you start entering information. This is the community property page that will appear and the pages that follow it.
  6. To complete this section properly, you will need to report your income and your spouses income. The same for the credits and deductions. Once it's reported Turbo Tax will make the 50/50 allocations for you.  Your don't need to do anything other than entering your information and your spouses information correctly. 
  7. Your spouse will need to report their information accurately when they prepare their returns 
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rybird88
Returning Member

Where is "community property income" section in Turbo Tax?

Thanks for the detailed instructions Dave.

 

I did exactly as you suggested, but I'm still sent to the same page that I was on all previous attempts which asks about the stimulus payment. Nothing about community property, etc. 

 

So, using the magnifying glass to search either "8958" or "community property" and clicking the "jump to" link I go to the stimulus page... not the community property page/section. 

 

I'm trying to "talk to a specialist" via the support section. TT says they will call me back in 8 minutes or 13 minutes... but they are not calling me back. Waited for about 50 minutes now. 

rybird88
Returning Member

Where is "community property income" section in Turbo Tax?

Okay... got this figured out. 

 

I didn't have the "state" chosen correctly in my personal info. Derp. 

 

So, now I am able to access the community property section. 

 

The first screen is the Community Property Income Adjustments. It has two boxes where I can enter a total "addition" or "subtraction" to my income. Turbo Tax offers no guidance or explanation. 

 

Does this screen assume that I am making all the calculations (regarding 50/50 split of W2's, 1099-int, 1099-div, etc.) outside of Turbo Tax and then I'll enter a lump sum addition of 50% of my spouse's income and then enter a subtraction of 50% of my total income??? 

 

And then I can ignore the remaining screens? 

 

Or do I skip that first Community Property Income Adjustments screen and then fill in the subsequent screens which detail Federal Withholding, W2 income, interest income, etc.?

 

Mainly I'm trying to figure out where or how I'm supposed to arrive at the amount I will enter into the "addition" and "subtraction" boxes of that first Community Property Income Adjustments screen. 

 

Thanks for the help!

DianeW777
Expert Alumni

Where is "community property income" section in Turbo Tax?

You must follow the state's rules when reporting community property income. Generally use your state's laws to determine whether a particular source of income is separate or community property because the IRS generally defers to each community property state's rules. The following links will help you decide how to allocate the income in TurboTax.  You may need to visit your state's website for specific income adjustments but you should start in the IRS publication to use a nice chart of Community Property and Separate Property.

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