Community Property Questions

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I have three Community Property questions:

1) On the Community Property Income Adjustments screen, is our Community Property income determined by our individual taxable income--from our individual 1040s--or do I use the taxable total from our Mock Joint 1040?

2) When combining our individual taxable incomes, Turbotax adds a taxable Social Security amount to partner's income. Do I need to do anything with that? (If I reconfigure total joint income adding this amount and make adjustments it will just add in a different amount, and so on)

3) Self-Employment tax and Deductible Part pf Self-Employment tax show up on final Community Property screen. Why? Do I need to do anything with these numbers, such as adding them to Community Property Withholding Adjustments screen?

Thank you for any help you can offer

TurboTax Home & Biz Windows

KrisD15

Alumni - Intuit

1. You should not have individual 1040's until AFTER you make the mock joint 1040 and then allocate the income to your individual 1040.

You use the TOTAL, then allocate to each.

2. If one spouse receives Social Security, and there is also common income, that common income may make the social security payments taxable.

3. Yes, if the self-employment income is community property, then the tax and the credit would need to be split as well.

Please look at IRS Pub 555 and your state laws for more clarity.

IRS 555

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DHarris321Author

Level 2

Maybe I wasn't clear, I'm asking these questions in regards to how I plug them into TurboTax:

1) TurboTax requests thst Individual 1040s be created before the Mock Joint 1040. So, apparently you're saying to use the Mock's income in regards to the Community Property Adjustment screen even though Turbotax says to create the Mock Joint after Community Property--on the zindividual 1040s--is configured

2) Like I said, so if I need to allocate these to Community Property, where do I plug them into TurboTax's tempkate?

DianeW777

Alumni - Intuit

Community property states usually require that your income be split 50-50. Having said that, each state has nuances in their own laws that can make the calculations complicated. Complete the Community Property worksheet once you have all the figures.

How do I contact my State Department of Revenue?

If you have a situation where all of our income is under community property law, then each of you will be claiming half of income. Your tax withholdings would also be split 50/50 between the two of you.

Create Test Returns
How to Compare Returns
Married Filing Separately-Community Property
- Begin by completing a MFS federal tax return for you and your spouse, as you'll need the amounts for different income categories, tax amounts, and all tax payments for each of you. If one of you plans to itemize deductions, the other person must itemize as well. Otherwise, you'll both have to use the Standard Deduction.

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