Hello! Just married not long ago and spouse and I chose to file MFS. We have a prenup which separates all our occupational income and the income from rent. I'm in California (community property state).
Should we still show our incomes split 50-50 on our form 8958's? Or show it as 100% our own and keep Total column C blank as none allocated to spouse? Or, do we simply check the "No" box where it asks if community property amounts are reported on the return? (Since we have none.)
Unfortunately, I wasn't able to find this information on my own. I appreciate anyone's help! Thanks!
@MxC86 , this is what I find from IRS Pub 555--->
Community Property Laws Disregarded
The following discussions are situations where special rules apply to community property and community income for spouses. These rules don't apply to registered domestic partners.
Hi @pk ! You're great! I greatly appreciate your post and guidance!
We individually treat our income as our own, but I didn't quite understand the part about "and you don't notify the spouse the nature and amount of the income by the due date for filing the return (including extensions)."
If this "and" were an "or" I'd have a clearer understanding, but it sounds like one would need to split 50-50 unless s/he doesn't notify the spouse of the income by the filing due date? We both know about one another's incomes and agree to both of our incomes are not community property, though California is a community property state. As such, since I can't say I didn't notify my spouse of the income by the return due date, community property laws do apply?
Maybe there isn't a clear-cut answer like I thought there would be. I'm leaning towards the keeping Total column C blank and show Total column B as 100% our own unless recommended this is not correct. Would doing this raise an automatic red flag?
Thank you for being so helpful, but I think I'm a still a bit lost in my confusion.
@MxC86 , not being a lawyer I seek a reasonable and simple path. And to me by means of a recognized/registered legal agreement you have decided to put certain items outside the "community property/asset " and thus if your incomes are outside the marital / community holdings then you should be in the clear to disregard the other spousal income. IMHO
A consult with the lawyer whom prepared the Pre-Nup Agreement may be worthwhile, so there are no misunderstandings.