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Level 2
posted Mar 28, 2022 4:33:52 PM

How to split odd numbers on Married Filing Separately Community Property Return

My spouse and I are married filing separately (MFS) and live in a community property state. When splitting income amounts, how do we handle odd numbers?

 

Example:

  • My W2 reports $101.00 in wages.
  • I want to split this evenly between my wife's return and my return.
  • Options
    1. I report $51.00, and she reports $50.00
      • Advantage: Adds to the total $101.00
      • Disadvantage: Is not evenly split between returns
    2. Or, should we both report $51 (i.e. $50.50 rounded up, pursuant to rounding guidelines)
      1. Advantage: Amount is evenly split between returns
      2. Disadvantage: Does not properly total to $101.00 after rounding

Thanks for any insight! I know this seems minor, but I have to do this math several times, and just want the convention that I follow to be the right one.

0 3 785
3 Replies
Level 4
Mar 28, 2022 5:03:16 PM

I think you should use option 1 so the total is correct.

 

Then you can show the split in detail by filing Form 8958 with your return.

Expert Alumni
Mar 28, 2022 5:11:09 PM

I would give the extra $1 to the person that earned it, if it was earned income.  If it's an amount that isn't attributable to one of you, it really doesn't matter.  The amounts are insignificant.

Expert Alumni
Mar 29, 2022 5:44:18 AM

It is a generally accepted practice to round numbers when completing your tax return.  The rounding you reference in your post will not cause an issue when you file your return.  As a side note most software programs automatically round the numbers when efiling if the number is entered with cents. @BFWP33