Form 8958 (Community Property) not included in software e-file?

[haleybartholow]

I'm filing my returns in a community property state (TX) and am using the desktop version of Home & Business TurboTax (for Mac). Elsewhere on the forum, I managed to find directions on how to include Form 8958 (no easy task!), which is required for my specific return. However, when I go to save a copy of my return for my records, the form isn't included. Nor does it appear to be included in the documents for e-filing. This was the whole reason I purchased the software instead of using TurboTax online.

Is this a bug? Why does the desktop software allow you to fill out Form 8958 but not include it in your paperwork? How does one escalate this to technical support? If this can't be resolved can I request a refund for the software? Any help would be appreciated. 

[JotikaT2]

You can add this form into your return by following the steps below.

1. Log back into TurboTax.
2. Go to the Forms section
3. In the left panel, select Open Form (the screen will be similar to the sample below)

Type in 8958, scroll down and select Form 8958 - Allocation of Community Property Amounts and open the form.

When you see the form, select the box Yes where it says Important:  Are allocated community property amounts reported on this return?  

This will generate the form and allow you proceed to edit your information and generate the form in your tax return.

If you wish to discuss your account with an agent, please use the link below to contact us for assistance.

Contact TurboTax

[kerid]

I'm having the same problem with the desktop version of TurboTax Deluxe on a Mac. I can see the form in the software, and I have completed it (including checking the "yes" box). I can also view my entries through the EasyStep guides. However, the form itself still does not render/generate when I preview the "Returns for Filing" documents. I'm reluctant to e-file my return until I confirm Form 8958 will be included in my electronic return because it is a required form. Please advise. Thanks!

[TiffanyL]

@kerid, you would need to use the FAQ link provided below to reach out to TurboTax customer support for assistance with this issue:

TurboTax customer support

[haleybartholow]

Thank you so much for this detailed reply. I have done as advised and Turbotax still doesn't include Form 8958 in my returns. If it helps, I'm divorced and filling Head of Household, and need the form to explain the reporting of 50% of my ex-partner's income - per our divorce decree and IRS regulations. I can search for and print/save the form individually, if I want to mail my returns, but for obvious reasons I prefer to e-file. I really think this is a bug that should be escalated to TurboTax software engineers. ???

[haleybartholow]

FYI, I spoke with technical support and with an agent and we were not able to resolve this issue. 

[JotikaT2 · Accepted solution]

If you are divorced, you would not be considered married for tax purposes, and as such, would not have any community property filing requirements.

If however, you have requirement to file Form 8958, you will need to mail in your tax return as it cannot be electronically filed.  Your marital status isn't reflected as Married Filing Jointly or Separately, so the form will not process as it isn't technically required if you aren't married.  

You can switch your filing status to Married Filing Separately to generate the form per the instructions previously provided but will need to switch your status back to Head of Household before you complete your return.  You can then print your tax return and attach Form 8958 as required per your agreement to meet your filing obligations.

[AP47]

I've got the same problem this year (2021 tax year) as several people submitting questions last tax year. Disappointed that Turbo Tax hasn't fixed this

This is the problem statement in my case and some others: a couple who divorced during the year (any time except 12/31) in a community state need to file as single, but also include a portion of the community income/deductions for the time up to their settlement date. (The split depends on the details of their settlement). Thus one of the couple receives a 1099 or W2 that includes income "as a nominee" for the other, for the period up to the settlement (divorce decree). We need to use form 8958 to split out the portion of that will be declared by our ex-spouse of their separate single return 

Your solution seems to be to fiddle with MFS setting, print the form then file paper version, however my state required electronic submission so this is not satisfactory. I will have to apply for waiver from CA for electronic submission....

Please fix this 

[AP47]

"If you are divorced, you would not be considered married for tax purposes, and as such, would not have any community property filing requirements".

This is simply incorrect - please see my other reply.  In the year of the divorce, you have the period of time up to the settlement date as a married couple, who are thus in a community. Thus for that period you have community income, this income must be divided appropriately and declared by each. Then you also have the remainder of the year as a single filer.  So your return in the year of divorce is a blend of the two periods.  

[LeonardS]

Your statements concerning the settlement of community property are correct.  In order to resolve this issue, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

1. Sign in to your online account.
2. Locate the Tax Tools on the left-hand side of the screen. 
3. A drop-down will appear. Select Tools  
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.

[AP49]

Replying to LeanardS - (please note, this is AP47, but for some reason I had to re-register as AP 49)

The token is 949260

Thank you for our help

[Starcatch]

Are you able to resolve the issue of 8958 not included in efile tax return? I encountered the same.

[CarissaM]

Have you already filed your return? Also, are you filing using the desktop version or online? @Starcatch

[Starcatch]

Not yet. I am using desktop version for windows.  I can select form view and generate the 8958 individually but not in efile package. I hope I can efile if this can be resolved.

Another issue that bothers me is: since the community property adjustment goes into "other income" in schedule CA (540NR) , section B (additional income), line 8z(other income), however TurboTax shows blank (meaning 0) in column D (Total amount using CA law as if you were a CA resident) and don't allow input in this column at this line , thus the section B line 10 (total), column D(CA amount as if CA resident) differs from column A(fed amount) by the adjustment amount.  Al though it seems not impact my total state tax, but the diff looks incorrect. Is this a bug?

Thank you

[Starcatch]

forgot to mention, my filing status is head of household (married but lived apart from spouse for the whole 2021)