How to answer community property income?

For Registered Domestic Partners in a community property state, what is the Community Property Addition and Subtraction Adjustment?
The latest update to TurboTax includes this screen, but doesn't define these terms. Is it a half or the total amount of my partner's gross income and federal taxes paid? Or is it something else? This latest supposedly more "RDP friendly" version of TurboTax is simply frustrating!!!
    I THINK I've figured this out.  (My RDP returns were accepted by e-file.)

    You fill out both of your returns up to the adjustment page. Report all income on the return of the partner who received the documentation (W-2, 1099, etc.).

     Decide what is community property income based on the rules of your state. (In CA it seems to depend on if the income comes from a source acquired after you became RDPs.  There should be an explanation on your state's website.)  

    Add up the community property income from each return.  Enter 1/2 of YOUR community property income as a subtraction adjustment on your return and an addition adjustment for your partner.  Enter 1/2 of YOUR PARTNER'S community property income as an addition adjustment for you and a subtraction adjustment on her/his return.

    Deductions can be handled however makes the most sense for you.  If they come out of joint accounts or your finances are completely mixed, they can be divided 50-50.  Or you can divide them by whoever acquired the deduction.  Or some combination.  The Feds seem mostly interested in income.

    If this process is correct, I don't see why TurboTax couldn't have explained it.  If I've got it screwed up I hope someone sets me straight. . .well, not straight. . .I hope someone lets me know where I'm off.
    • Good response, but note that if you provide the CP adjustments for taxes withheld in addition to the wages adjustments (which is permissible and probably advisable in most cases), you are NOT allowed to e-file and must submit hard copies along with your 8958 worksheet(s)
    Yes, it's true that you will not be able to e-file.
    • I understand the RDP Pub 555…  What I don't understand is how to use my TurboTax to do it.  I have done both returns separately.  I even entered the additions and subtractions on the community property page.  When I reviewed the supposedly adjusted returns they were not the same, which they should be for my partner and I.  We don't have any income or property that isn't considered "community."  How do you get Turbo Tax to fill out these forms correctly???
    Not always, the adjustment varies depending on what is or is not community income.  You can read more about this at, Publication 555
    • IRS Publication 555 is available on the IRS website at:
    • I've read IRS publication 555 and am still / even more confused. This might be the first year I have to pay someone to help me with taxes.
      p.s. I've read that the new rules may increase your refunds, especially if one spouse/partner earns considerably more than the other. Since the new rules were enacted June 2010, you can actually amend several years back (to 2007?) if it helps you improve your situation.
    • Here is some additional insight on this issue:
      The federal government has acknowledged that registered domestic partner relationships, which are recognized in certain community-property states (such as California), should have their community income (not necessarily all income) equally split between two single federal taxpayers.  They have provided that, optionally, past returns can be amended to reflect such an equal split, but it is not obligatory to do so.  Going forward, domestic partners in community property states are required to evenly split their community income when each filing their single federal tax return.
    • I made the additions and subtractions, and all the withholdings adjustments, and then e-filed my federal return.  But it was rejected by the IRS with this message: Form 1040/1040A/1040EZ - Total Federal Income Tax withholding shown on tax form must equal the sum of withholding on Forms 1099 and Alaska Dividend, withholding from Schedule K-1, withholding on Form W-2, and W-2G.

      What's the deal?  My withholdings won't match my W2 because of the adjustments made for my partner's withholdings.  Did I do something wrong?  Or can we not e-file these returns with community property adjustments?
    • how do you know what your addition and subtraction adjustments are. how do you figure these numbers to put on the tax returns i dont know how to get these numbers........please help me
    • I know this is old, but in case anyone is still wondering...To my understanding, the addition is half of what your spouse/partner earned that is technically considered yours too. The subtraction would be half of your earnings that is considered your spouses.
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