For community property adjustments/income, do I enter my husband's income? I am married filing separately because he is a German citizen who only works in Germany.

[lwhite1986]

Since all of my husband's income is made in Germany and he lives in Germany, he isn't filing taxes in the US. My money was made in a community property state so I'm being asked if I have community income/property to report. Do I then answer no since his income isn't taxable by the US? If I need to answer 'yes,' what do I need to enter? We don't own any property. If I need to enter his income, does that now become taxable? I read the pamphlet provided and am still completely confused. Please help! Thanks so much!!

[MaryK4]

No, you do no include your husband's income as community income because he is a German citizen and Germany is not a community income country.  If you are the resident of a community property state, income earned in a community property state is community income., so one half of your income is reported by you and he may now have a filing requirement.  You should check the community property laws of your state to see if you can by agreement waive the community income.

[lwhite1986]

Hi,

Thank you for your help. It did partially help. I'm trying to find the community property law in Washington state and I can't find anything that pertains to having a spouse who lives/works outside of the US. It is all so confusing. I wouldn't even know who/how to contact someone seeing if I can waive the community income. I'm currently in Germany myself until May. I already filed for an extension. Should I just wait until I'm back in WA in May and go to a tax preparer in person? It's just so frustrating because other than having a spouse who lives/works outside the US, my taxes are so simple. 

Thanks again for your help, it means a lot!

Sincerely,

Laurel 

[DMarkM1]

Since you have filed an extension it is okay to wait until you return to WA to file.  However, you may not need to wait or hire a tax professional.  

It appears from the rules in IRS Publication 555 (extracted below) concerning non-resident alien spouses that you would file your separate return with only your income.  According to the Publication, you would treat your income as if you lived apart all year without having to meet the four tests listed.  

"If you are a U.S. citizen or resident alien and don't choose to treat your nonresident alien spouse as a U.S. resident for tax purposes, treat your community income as explained next under Spouses living apart all year. However, you don't have to meet the four conditions discussed there."

"Treat earned income that isn't trade or business or partnership income as the income of the spouse who performed the services to earn the income. Earned income is wages, salaries, professional fees, and other pay for personal services."