TurboTax FAQ
TurboTax FAQ
202 people found this useful

How do I prepare our RDP return if we live in California, Nevada, or Washington state?

If you and your partner are in a registered domestic partnership (RDP) and you reside in the community property states of California, Nevada, or Washington state, you'll each need to prepare your own federal tax returns based on your state's community property rules.

You'll both report your share of community property income, which is determined by your state's tax laws and other factors like prenuptial agreements.

We can't figure out what your share of community property is; each couple will need to determine this for themselves. IRS Publication 555 (page 3 in particular) has guidance on how to determine and properly split community income.

Tip #1: Let's be honest. Understanding community property tax laws and calculating each partner's allocations is not something most people enjoy doing. You may want to engage the services of an EA or CPA who specializes in community property tax preparation.

Tip #2: If you disregard tip #1 and you also want to jointly file your California state return, we strongly recommend switching to the TurboTax CD/Download software instead of TurboTax Online. It simplifies things and will also saves you some money. Also, our instructions in Part IV are geared towards the software. How to switch

Part I: Do your federal return first

  1. Start a return for yourself in TurboTax.
  2. When you get to the Were You Married? screen, select In a Registered Domestic Partnership (RDP).
  3. (California residents only) On the following screen, select the second option This is the single community property return I will file with the IRS.
  4. Proceed through the interview and enter your income, deductions, etc. as they were reported to or incurred by you.
  5. When you get to the Community Property Income screen, answer Yes and continue.
  6. On the Community Property Income Adjustments screen, enter the adjustment as determined by your state's rules.
    • This is the amount that adjusts your actual income to your share of the community property.

      For example, let's say both partners' share of the community property income is $50,000 apiece and your actual income was $45,000. You'd enter a 5,000 addition to adjust your income to the community property amount of $50,000. (On your partner's return, they would enter a $5,000 subtraction; that'll come in Part II.)

    • Use positive numbers for either adjustment.
    • When finished, click Continue.
  7. On the Tax Withholding Adjustments screen, enter the adjustment (if any) for any withheld taxes from your W-2s and 1099s as determined by your state's rules.
    • Follow the same guidelines in Step 6, except tax withholding subtraction adjustment amounts should be preceded with a minus (-) sign.
    • Don't include estimated tax payments, as they are considered separate property.
  8. Enter your partner's information on the Registered Domestic Partnership Information screen and click Continue

The next few screens all start with Community Property – for example, Community Property – Wages. On these screens, you'll want to:

  • Verify the amounts in the You column.
    • If wrong, go back to the source to correct (for example, to correct your wage amount, go back to your W-2 and fix the amount there).
  • Enter your partner's actual wages, interest, dividends, self-employment income, and/or miscellaneous items.
    • Tip: Jot down the information on these screens or better yet, take screenshots. This will come in handy when you get to Part II.
  • When you get to the Enter Your Partner or Spouse's Community Income screen, STOP. Write down the info in the You Reported column or take a screenshot.

Save your return and close it. You are now ready to move to Part II.

Part II: Prepare your partner's federal return

Follow steps 1 – 8 in Part I, except this time enter the information for your partner.

When you get to the Community Property Income Adjustments and Tax Withholding Adjustments screens, make sure your partner's additions or subtractions counterbalance the ones you entered on your return.

For example, if you entered a $3,000 community property addition adjustment on your return, your partner will need to have a $3,000 community property subtraction adjustment so that the numbers from both your returns zero out.

On the community property screens with the You and Partner/Spouse columns, your partner's info goes into the You column (because it's their return, obviously) and the info from your return goes into their Partner/Spouse column. This is where the screenshots you took in Part I really help.

When you get to the last screen, Enter Your Partner or Spouse's Community Income screen, the information in the You Reported column on your return goes into the Your Partner/Spouse Reported column on your partner's return.

When finished, reopen your return and proceed to the Enter Your Partner or Spouse's Community Income screen so you can enter the information from your partner's You Reported column into your own return's Your Partner/Spouse Reported column.

Phew. On to Part III.

Part III: Finish and file both returns

The hard part is done. On each return, go through the Review sections before moving on to the File section.

When you get to File, simply follow the onscreen instructions to file each federal tax return. IRS rules may prohibit community property returns from being e-filed in certain cases. That's OK – just follow the instructions to file a paper return and be sure to include a copy of the community property worksheet.

If you wish to file one or more California returns, proceed to Part IV.

Part IV: (Optional) Prepare and file your California return(s)

If the two of you are filing separate California returns, the process is straightforward:

  1. Open your returns and go to the Personal Info section.
  2. Proceed to the Your Personal Info Summary screen and click the first Edit button.
  3. Continue to the Registered Domestic Partnership screen and select the first option, This is a married return we will use to prepare our state return.
    • Then select the last option, We want to file married filing separately for this state and continue.
  4. Back at the Your Personal Info Summary screen, click Edit next to Name Incomplete and enter your partner's information.
  5. (Optional) It wouldn't hurt to step through each federal return and run the Review again.
  6. Move on to the State Taxes section and follow the instructions to prepare and file your separate California returns.

On the other hand, if you want to file a California return jointly, you have some extra work to do. You'll need to create a mock federal joint return which won't be filed with the IRS. Its only purpose is to transfer your combined information to your California return.

  1. Open the return for the primary taxpayer (this is who you want listed first on your joint California return).
  2. From the File menu in TurboTax, select Save As.
    • We suggest giving it a distinctive name, for example 2014 Mock Joint Federal.
  3. In the mock return, go to the Personal Info section.
  4. Proceed to the Your Personal Info Summary screen and click the first Edit button.
  5. Continue to the Registered Domestic Partnership screen and select the first option, This is a married return we will use to prepare our state return.
    • Then select the option, We want to file married filing jointly for this state and continue.
  6. Back at the Your Personal Info Summary screen, click Edit next to Name Incomplete and enter the other partner's information.
  7. Proceed through the mock federal return to add the other partner's income, deductions, credits, and so forth.
  8. Follow the instructions to prepare your joint California return in the State Taxes section.
  9. When you get to the File section, select the File by mail option.
    • For a number of reasons, you won't be able to e-file your California return.
  10. On the next screen, Select The Returns You're Ready to File By Mail, select Do not print my federal return to file by mail now and continue.
  11. Follow the onscreen instructions to print your California return for paper-filing.

You should print a copy of your mock federal return (along with your California return) for your records, but don't file the mock return with the IRS.


GEN45613