MFS Community Property State & Unemployment

[scmichael3]

My spouse and I live in a community property state (WA) and file separately due to income based student loan repayment. My spouse received unemployment income in 2020, but I did not. I believe that with the $10,200 unemployment deduction recently added and unemployment income being viewed as community property in WA, we should each be able to deduct accordingly for our half of the UI. 

I'm running into trouble, however, in aligning this with the community property worksheet (Form 8958). The worksheet indicates we should divide up unemployment income equally and make an adjustment to income. The 1099-G in this case is only attached to my spouse's who received the unemployment with a reduction to their income, and on my return only as an increase to income adjustment. But this results in them paying no tax on their half of UI, but the portion on my return not receiving the deduction as it shows up in Turbotax as simply a positive adjustment to income without any reference to it being UI.

What should I do? Should I somehow misrepresent the 1099-G on both of our returns and enter 50% in each of our returns? Is there some other form I should be filling out here?

[KrisD15]

I suggest you use the screen to enter the adjustments as just one entry. 

Enter your half of the unemployment (as well as any other income adjustments) in the "Community Property Addition Adjustment" box

Enter your half of the non-taxed unemployment (as well as any other deduction adjustment) in the "Community Property Subtraction adjustment" box.  

You can get to this screen by typing    COMMUNITY PROPERTY    into the search-box then click the "Jump to community property" link.

[Ledillon1]

I am also dealing with this, in the CD, in Texas.  Turbotax subtracts the 10,200 automatically from husband's return in the community property section, so no way that I've found so far to change the amount subtracted except for changing the amounts to account for it.

Is there a way to manually change the calculation?

[scmichael3]

We weren't able to figure it out online, but managed to do this successfully in the Turbotax version that you download.

[Ledillon1]

Great!  How did you do it?  I’m trying to figure it out. Thanks!