Hi, I'm in California (community property state) and am married filing separately. I'm looking to split my interest income, dividends, and mortgage/tax deductions. My question is around how I should report these in Turbo Tax. I've not found a place where it walks me through. For example, for interest income, do I just manually adjust and enter 50% on my interest income line and 50% on our spouses? Or do I enter 100% and select "I need to adjust the taxable amount." on the next screen. And if I do, what do I choose as the reason for the adjustment on the next screen? I've also been seeing some other form (8958?) that I will also need to fill out to show the adjustment. When do I fill this form out? Thanks for the help.
You can enter the full amount, then select " I need to adjust the taxable amount" You can select either "Other Reasons" or "I received all or part of this interest for someone else" and then enter half the amount in the adjustment box as a positive number.
I've also been seeing some other form (1098?) that I will also need to fill out to show the adjustment. When do I fill this form out? Do you have a 1098? If so, which type? Those are usually for mortgage interest, student loan interest or education credits, these are all entered in the Deductions and Credits section.
Thanks for the response, Vanessa. I had the wrong form listed. I think it's Form 8958? It's the form that lets the IRS know how we are breaking out all the interest and deductions. My question is when do I fill out this form in the process? Will it automatically prompt me to fill out or do I need to proactively add it somehow. Thanks!
If you keep walking through, it should pop up for you after you enter all your income and expenses.
If it does not, you can click search in the upper right hand corner and type in 8958, then click jump to. This will take you to the form.