Question

Form 8958 (Community Property allocation) - do I need to list separate property too?

Forum|Forum|5 years ago
February 21, 2021
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We are unmarried registered domestic partners in California, so we have to use Form 8958 to split community property income between the two of us and file Federal tax returns as two singles.

We have some 1099’s from pre-RDP accounts that are still separate property. Do I need to list those 1099’s on Form 8958 as well and just put 100% of total amount in Col. A in Col. B for that entry?

J

JoannaB2

The federal government does not recognize domestic partners as married individuals, therefore, they continue to file unmarried individuals on their federal return. You may use form 8958 to allocate your income for computation only, You have to enter the i/2 of the community property income only as other income on line 8 of 1040 from Schedule 1, line 9 and enter the description " filing RDP joint in California return . On form 8958, allocate income (wages, interests, dividends and many more), self-employment taxes only, and more

See. form 8958, link for instruction

S

si29xnmAuthor

When I add the Community Property adjustment amount, TurboTax does put that amount in line 8 of Form 1040 as you say. In my example, that is -$41,479. But then, TurboTax puts "Other income" for that amount in Section 12 of Form 8958 ("Other items such as: Social Security Benefits...") automatically, and I cannot delete it. Is this really the right way of doing it? The entire point of Form 8958 is to show IRS how we split our income between the two of us, so why would I put the community property adjustment amount as a line item?

J

JoannaB2

Yes, you need to use form 8958 to allocate al income. In turbo Tax, under Community Property Income, cilck yes on " Do you have any community properry adjustments on community property income to report for 2020. You will be asked to enter "Community Property addition/adjustment " and "Cmmunity Property Subtraction/adjustment.

See, how do i prepare an RDP return, link