My spouse and I are married filing separately (MFS) and live in a community property state. When splitting income amounts, how do we handle odd numbers? Example:My W2 reports $101.00 in wages.I want to split this evenly between my wife's return and my return.OptionsI report $51.00, and she reports $50.00Advantage: Adds to the total $101.00Disadvantage: Is not evenly split between returnsOr, should we both report $51 (i.e. $50.50 rounded up, pursuant to rounding guidelines)Advantage: Amount is evenly split between returnsDisadvantage: Does not properly total to $101.00 after roundingThanks for any insight! I know this seems minor, but I have to do this math several times, and just want the convention that I follow to be the right one.

Question

How to split odd numbers on Married Filing Separately Community Property Return

Forum|Forum|4 years ago
March 28, 2022
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My spouse and I are married filing separately (MFS) and live in a community property state. When splitting income amounts, how do we handle odd numbers?

Example:

My W2 reports $101.00 in wages.
I want to split this evenly between my wife's return and my return.
Options
1. I report $51.00, and she reports $50.00
  - Advantage: Adds to the total $101.00
  - Disadvantage: Is not evenly split between returns
2. Or, should we both report $51 (i.e. $50.50 rounded up, pursuant to rounding guidelines)
  1. Advantage: Amount is evenly split between returns
  2. Disadvantage: Does not properly total to $101.00 after rounding

Thanks for any insight! I know this seems minor, but I have to do this math several times, and just want the convention that I follow to be the right one.

Not A Product Question

Rocket J Squirrel

Employee

I think you should use option 1 so the total is correct.

Then you can show the split in detail by filing Form 8958 with your return.

D

DavidD66

I would give the extra $1 to the person that earned it, if it was earned income. If it's an amount that isn't attributable to one of you, it really doesn't matter. The amounts are insignificant.

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LeonardS

It is a generally accepted practice to round numbers when completing your tax return. The rounding you reference in your post will not cause an issue when you file your return. As a side note most software programs automatically round the numbers when efiling if the number is entered with cents. @BFWP33

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