Child Tax Credits and Estimated Tax Payments in Community Property State

[shoyt01]

Hi,

My wife and I are married filing separately in Texas (community property state).  I am claiming our three children as dependents for tax purposes and my wife is not so I am receiving child tax credits for my tax return.  Do I need to split this with my wife somehow for community property purposes?

Also, I paid $915 in estimated taxes in 2022 for $3230 in 1099 income I made working as an independent contractor.  I am splitting the $3230 in 1099 income with my wife on the community property worksheet but do I need to share the estimated taxes paid somehow?

I am asking because TurboTax only has areas to adjust community property income and federal tax withholding (but not tax credits or tax payments).  Thanks in advance for your help!

-Steve

[Vanessa A]

Yes, line 12 of form 8958 is where you will enter any items not previously addressed including deductions and credits. 

[shoyt01]

Thank you for your help.  I appreciate it!

Would estimated tax payments and child tax credits affect the community property income and federal tax withholdings?  Those are the main two categories that TurboTax uses for addition/subtraction calculations.  Specifically for the child tax credits that I claimed for my dependents, how would I split that with my wife on TurboTax and would it affect our community property income or federal tax withholdings?

I did find this on Publication 555 regarding Community Property:

"If you paid your estimated taxes separately, you get credit for only the estimated taxes you paid."  Since I paid estimated taxes separately for my 1099 work, does this mean I don't need to split it with my wife somehow?

Thanks again

[RobertB4444]

Yes.  It is all community property.  Your estimated payments are credited to her, the kids are equally claimed by her, etc.

The exceptions to all of this is if you didn't live together for at least the last six months of the year then you can file as single and skip all of the rest.  But if you did live together for more than half of the year then she is considered to have supported the kids as much as you.  You can't claim them separately.  And she is considered to have made those estimated payments with you.

@shoyt01