Question

Please explain: "Since you're in a registered domestic partnership in California, the law requires you to prepare at least three federal returns."

Forum|Forum|6 years ago
February 9, 2020
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TurboTax Deluxe Online

Registered domestic partners may not file a federal return using a married filing separately or jointly filing status. Registered domestic partners are not married under state law. Therefore, these taxpayers are not married for federal tax purposes.

So, you have to file two Federal returns. California allows you to file Jointly. To do this so you would prepare a third, dummy joint Federal return to use to file the State return.

If you plan to file a joint state return we strongly recommend using TurboTax CD/Download software instead of TurboTax Online. It will allow you to prepare all three returns in the same software package.

For further information please see the TurboTax websites: How do I prepare my return if I'm in a registered domestic partnership (RDP) or civil union (CU)? and How do I prepare our RDP return if we live in California, Nevada, or Washington state?

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K

katlin1

Sorry but need further clarification on California Domestic Partnership filings. I understand the extra steps necessary IF Domestic Partners are filing jointly in California but separately for Federal - BUT IF THERE'S A TAX ADVANTAGE for the California Domestic Partners to file separately instead of jointly ... is that allowable? Thinking it is since Married couple have that choice? (One partner's income having substantial negative impact to California joint filing option) Tied to this question - IF THE ANSWER IS 'NO' / the California Domestic Partners MUST file jointly for California and separately for Federal / is it allowable for the lesser income partner to invest in an IRA to lower her Federal tax base income OR does she have to go with the California Domestic Partner statement of "your income is too high"?

DawnC

In the State of California - If you’re married/Registered Domestic Partner (RDP), you may choose to file separately. Each spouse or partner will prepare a separate tax return and report their individual income and deductions. Under California law, RDPs must file their California income tax returns using either the married/RDP filing jointly or married/RDP filing separately filing status. RDPs are not allowed to use a married filing status on their federal tax returns.

Tax rates are higher for the married/RDP filing separately filing status
If one person files itemized, the other spouse/RDP must file itemized as well
You do not qualify for Earned Income Tax Credit (EITC) or Child and dependent care credit
Standardized deduction is reduced (1/2 of married/RDP filing jointly)

You may be able to file as head of household if your child lived with you and you lived apart from your spouse/RDP during the entire last six months of the year.

Community property

California is a community property state. When filing a separate return, each spouse/RDP reports the following:

One-half of the community income
All of their own separate income

Community property rules apply to the division of income if you use the married/RDP filing separately status.

Visit Guidelines for Determining Resident Status (FTB Publication 1031) for more information.

Filing requirement

Visit Resident, Part-year resident and Nonresident taxation or Military for your filing requirement. @katlin1

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X

xyz611

What if you have only been in an RDP for only 2 months? My RDP filed single for both federal and state taxes. What is supposed to be done then?

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MAK70

Your filing status for December 31st of the tax year counts for the entire year. Your RDP will have to file an amended state tax return to reflect your RDP.

Carl11_2

The IRS does not recognized an RDP. Period. So each individual is required to file their own separate federal tax returns with a filing status of single. Period. If using the online version of TurboTax, this will be EXPENSIVE. It's also extremely tricky and in some cases just flat out not possible to file all returns CORRECTLY using any version of Turbotax... be it desktop or the online version.

Partner A will need to create their own online TurboTax account and complete both a federal return *AND* a CA state return with a filing status of SINGLE. But they will only e-file the FEDERAL return.

Partner B will need to create their own online TurboTax account and complete both a federal return *AND* a CA state return with a filing status of SINGLE. But ehy will only e-file the FEDERAL return.

Then both partners will need to create a thrid online account and complete a joint federal return *AND* a joint state return. It will not be possible to e-file either return. So you will have to print the state return, sign it, and mail it yourself to the state taxing authority.

Partner A will have to pay for e-filing their federal return.

Parner B will have to pay for e-filing their federal return.

Both will have to pay for "BOTH" the joint federal return (that you can not e-file even if you try) and the joint state return that you will have to print, sign and mail to the state.

So with the online version, this will be expensive.

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katlin1

Thank you Carl for the 'online' information for RDP filing. I am NOT USING THE ONLINE version of TURBO TAX. I purchased and loaded TURBO TAX DELUXE on to my computer.... the one I've used every year for the last 10 plus years. I don't EVER remember running in to RDP community property problems/questions in previous tax years even when I went down the RDP path / so I've stumbled to a stop! It appears to me this may be a 'new' requirement / differing from last year? (My married son had no community property issues/questions!) I will restart the process today / but now wondering if TURBO TAX DELUXE will guide me clearly enough thru the community property issues? There are no children, there is no property, there is one inheritance account for one partner and one separately funded account for the other. Reading government documents it appears these are NOT part of the community property. Will Turbo Tax tell me that?

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Sophie2601

I keep getting the following error when trying to e-file the joint RDP return. We have already submitted each of the federal returns which have been excepted. "This return can not be e-filed before your federal return has been e-filed." We are not allowed to file a joint federal return. I didn't have this error or issue last year. Please help!

KrisD15

As stated above, if you are filing Jointly for California, you will need to calculate a "fake" joint Federal return in order for the numbers to match the state return.

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Sophie2601

I did that but I am still getting the error -- "This return can not be e-filed before your federal return has been e-filed." It's forcing me to file the fake federal return which I don't want to do.