Question

How do I figure what the community property income adjustment is? We are married filing separately, her income was 111,661 and mine was 76,812.

Forum|Forum|6 years ago
June 3, 2019
4 replies
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TurboTax Premier Online

Community property states usually require that your income be split 50-50. Having said that, each state has nuances in their own laws that can make the calculations complicated.

If you have a situation where all of our income is under community property law, then each of you will be claiming approximately 94,000 of income (1/2 of 188,000, which is your total income). Your tax withholdings would also be split 50/50 between the two of you.

That is a general guide; you may need to look at specific Wisconsin law. And this FAQ can give you aditional information to assist you: https://ttlc.intuit.com/replies/3301943

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M

mistercampbell

would he write in addition adjustment or subtraction or both?

VictoriaD75

When you are doing the Community Property allocation you will take the TOTAL for the community property for each category then divide it in half. For the amount attributed to each spouse, you add or subtract to make up the difference of the half. For example:

If Bob made $800 and Mary made $200 the total wages are $1000. One half is income to each spouse- which is $500.

Because Bob made more, he would have a subtraction to get his $800 to $500. Mary would have an addition of $300 to get her to $500.

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M

mistercampbell

So in the image above, Bob would only add a subtraction of $300 in the Community Property Subtraction Adjustment field right and leave the other field blank?

And in the second image, I would do the same thing with tax (most likely a subtraction adjustment for Bob) withholding right? Another issue I noticed is that when I enter a positive value in the Tax Withholding - Subtraction Adjustment federal, state, and local amount fields, it says "maximum value is 0". I was wondering why this happens. Am i supposed to put a negative value? e.g. -300

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aeleblanc

I am having the same problem with the second image/section you are referring to.

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Robert Prentice

It's totally unacceptable that Turbotax won't do communal property calculations for us for each state situation! That's then reason we purchase software instead of using a tax guy! ヽ(ಠ_ಠ)ノ