How do i know if I have to file community income?

[greendodge69]

I live in texas I am still married but ha e not lived with him in over a year how do I know if I have to file community income?

[KurtL1]

If you and your spouse have different domiciles, check the laws of each to see if you have community property, community income, or both.

Community property. Generally, community property is property:

• That you, your spouse, or both acquire during your marriage while you and your spouse are domiciled in a community property state.

• That you and your spouse agreed to convert from separate to community property.

• That can't be identified as separate property.

Community income. Generally, community income is income from:

• Community property.

• Salaries, wages, and other pay received for the services performed by you, your spouse, or both during your marriage while domiciled in a community property state.

• Real estate that is treated as community property under the laws of the state where the property is located.

See IRS Publication 555 - Community Property.

[taxfreezone]

I'm married and thinking about filing separate this year to see if our tax situation would be better.  I live in a community property state (AZ).  I just want to make sure I understand community income.  If my wife gets (wages salary or pension) from her separate job, do I have to add half of her income to my tax return?

[VictoriaD75]

Yes. When you are doing the Community Property allocation you will take the TOTAL for the community property for each category then divide it in half.  For the amount attributed to each spouse, you add or subtract to make up the difference of the half.  For example:

If Bob made $800 and Mary made $200 the total wages are $1000.  One half is income to each spouse- which is $500.

Because Bob made more, he would have a subtraction to get his $800 to $500.  Mary would have an addition of $300 to get her to $500.

Tax Tips for Community Property States

There are certain tax implications to filing separately versus filing jointly. The standard deduction is less for Married Filing Separately ($12,200 in 2019) versus Married Filing Jointly ($24,400 in 2019). If one spouse itemizes, the other must as well regardless of the amount of deductions. Itemized deductions cannot be claimed in full on both returns. They may be split 50/50 or any other percentage as long as the total between both returns does not exceed 100%.

Opting for the Married Filing Separately status excludes taxpayers from certain tax credits, such as the Earned Income Credit or education credits.

Finally, in the event that you live in a community property state, you will have to list your spouse's income, tax liability, withholding, etc. on your return regardless of filing status.

Should You and Your Spouse File Taxes Jointly or Separately?

Married Filing Separately