Question

MFS partial year in a community property state

Forum|Forum|2 years ago
April 9, 2024
1 reply
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My husband and I are filing taxes separately this year for a few reasons, including qualifying for financially advantageous student loan repayment terms for his loans. Due to this, a number of complications have arisen. All solvable, but this latest one has stumped me a bit. My question revolves around community property income adjustments.

We lived in AZ for 6 months (a community property state) from Jan-June 30 and in UT (not a community property state). I was the sole income while living in AZ and made $63,008 while domiciled there. TurboTax is asking me about community property addition or subtraction adjustments. My interpretation is this but I'm not confident about it: Brennan should be reporting half my income for the Jan-June time period as a community property addition adjustment ($31,504) on his return and I should be reporting the other half as a community property subtraction adjustment ($31,504) on my return. We both had W-2 incomes once we moved to Utah.

To further complicate, I was a 1099 worker while earning that $63,008 so I made 2 estimated tax payments (Q1, Q2) each to the federal and AZ governments. So then I need to adjust withholdings as well, right?

I think things are clean cut once we made the move to Utah because we both are W-2 workers with normal employer withholdings, and UT is a non community property state.

Thank you SO MUCH for any advice you can offer.

Not A Product Question

M

mglauner

Yes, you are on the right track for reporting Community Property Income on your MFS returns.

Your community property worksheet will appear right after you complete your income adjustments. If you can't find the worksheet: Sign in to TurboTax and open or continue your return. Search for community property worksheet and select the Jump to link.

Here's more info on Filing MFS in Community Property States.

K

kcoub1Author

Hi Marilyn. Thanks for the response. But is turbo tax calculating community property based on an assumption we were domiciled in a community property state for an entire year? We were living in Arizona for 180 days of last year, so only a portion of the year, thus community property is only the income I made while living in AZ. Thanks for the clarification.