community property income

[TBlack17]

My husband is retired military and we don't pay property tax in Texas. I file separately from my husband although we are not separated, and I'm not eligible for e-file because of a community property income. We don't have income from our property. I don't understand what that means.  Can someone explain? 

[xmasbaby0]

It is not clear why you and your spouse are filing separate returns.   "Community property" has nothing to do with whether you derive income from property you own.  It sounds like you need to understand what it does mean.  Here is one article to help---and you could google others.

https://www.investopedia.com/terms/c/communityproperty.asp

If you were legally married at the end of 2025 your filing choices are married filing jointly or married filing separately when you prepare your 2025 return.

Married Filing Jointly is usually better, even if one spouse had little or no income. When you file a joint return, you and your spouse will get the married filing jointly standard deduction of $31,500 (+ $1600 for each spouse 65 or older)  for 2025. You are eligible for more credits including education credits, earned income credit, child and dependent care credit, and a larger income limit to receive the child tax credit. 

If you choose to file married filing separately, both spouses have to file the same way—either you both itemize or you both use standard deduction. Your tax rate will be higher than on a joint return.

 Some of the disadvantages of filing separately include: 

You cannot get earned income credit, 

You cannot get education credits or deductions for student loan interest. 

You cannot get the childcare credit

You have a lower amount of income on which to base the refundable additional child tax credit

85% of your Social Security benefits will be taxable even with no other income 

The amount you can contribute to a retirement account will be limited.

Capital loss deduction is less than if you file jointly

You cannot get the $6000 senior deduction

You cannot get the deductions for overtime or tips

 If you live in a community property state, you will be required to provide additional information regarding your spouse’s income. ( Community property states:  AZ, CA, ID, LA, NV, NM, TX, WA, WI) and your returns become very complicated.

 If  you are using online TurboTax to prepare your returns, you will need to prepare two separate returns and pay twice since with online, you get one return per fee.

https://turbotax.intuit.com/tax-tips/marriage/should-you-and-your-spouse-file-taxes-jointly-or-separ...

https://ttlc.intuit.com/turbotax-support/en-us/help-article/income/getting-married-mean-taxes/L2Rgma...

https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/married-filing-separately-commu...

[TBlack17]

My husband is retired military and doesn't want to file jointly

[xmasbaby0]

Gotcha.   If he is 65 or older  he is giving up the new $6000 senior deduction, and causing you to lose it too.   When you file separate returns you cannot get that new tax deduction.

[TBlack17]

 He gets VA disability benefits 

[xmasbaby0]

VA benefits are not taxable.    They do not get entered on any tax return.   Meanwhile, if you have taxable income, you are losing all of the advantages of filing a joint return.   You could file a joint return even without his income on the return, and then you would get the higher married standard deduction of $31,500 (+ $1600 for each spouse 65 or older) and you would get $6000 senior deductions for each of you that is 65 or older.  And you could be eligible for earned income credit.    Filing MFS sounds .....foolish.....disadvantageous to both of you.

[TBlack17]

I've tried to explain that to his along with adding our house. He's doesn't want to. We've been in our house 5 years and he won't let me claim it on the form.  

[xmasbaby0]

So sorry---sounds like you have some problems bigger than tax issues.  Best of luck.