Hi there, my partner and I are in a registered domestic partnership in California.
We are electing to file jointly in California and I understand that I have to prepare a mock federal filing jointly tax return. But when it comes to our two separate federal returns, I have a few questions.
1) Can we efile each of our single (community property) Federal return?
2) Other than including form 8958 to each of our federal returns, is there any other forms required for two single federal community property returns?
3) I have the desktop version of turbo tax and I can't seem how to add the form 8958 to our federal preparations.
Any advice would be most appreciated.
Yes, in most cases you may e-file a Federal tax return using Married Filing Separately. TurboTax for Desktop allows you to e-file one return for free. There may be a charge to e-file the second return, though you may file a paper return for free.
Note that depending on how tax withholding payments are allocated between the two MFS returns, the IRS may not accept e-filed MFS tax returns at this time. If your tax return is rejected with error code 0103, you will need to print the tax return with the community property worksheet and mail the return to the IRS. TurboTax will provide instructions for this if needed.
TurboTax will include all necessary forms for each return that you file. The Review process will check to be sure you have a complete return before you file. Be sure you save each separate return with a different file name. That includes the mock joint return you will use to e-file your California return. In the end, you should have three TurboTax files.
When you choose the filing status "Married Filing Separately," TurboTax should create Form 8958 for you. Be sure you have selected this filing status under Personal Info for the two separate returns. Look for questions about your community property adjustments at the end of Other Tax Situations when you click "Done with Other." Follow the prompts to answer questions about reporting separate income and deductions.
When you finish this section, you may continue to the Federal review or look at Form 8958 first.
To review Form 8958, click the "Forms" icon in the TurboTax header. Form 8958 may already be displayed in the large window. If not, find the form in the left column and click the name to open the form. Review the information TurboTax has entered on the form.
You may change any amounts in a blue font, but not those in black. If a number or box turns red, click the Errors icon above the left column to open a box under the form that displays an explanation for errors. Any form with a red exclamation point beside the name must be corrected before you e-file your return.
For more info, see this TurboTax article: Married Filing Separately in Community Property States
[edited 2/13/2023 | 7:29 PST]
Thanks so much Patricia. I see it now and I was able to access it. My only confusion stems from whether we should be filing our federal taxes as single not married filing separately.
It says here that we aren't allowed to files as married filing separately.
Sorry for any confusion. Since you live in California, I interpreted your question to mean you were married. But you are correct. Registered domestic partners who are not married must file separate tax returns as single individuals.
This TurboTax article has specific information:
"Regardless of what state you live in, each domestic partner prepares a separate federal return based on the Allocation Worksheet that you attach to it. You might consider including an explanatory note to remind the IRS of your situation.
California domestic partners file as individuals for federal filing, however, under California law, the state return must be filed as a married return. This requires the creation of a “mock” federal return that reflects joint-filing status. This is just to get the numbers you need to fill in the sections of your state return that use numbers from a "married filing jointly" federal return. This ”mock” federal return never goes to the IRS; you submit it with your California state return."