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Level 3
March 26, 2025
Question

1040 allocation for MFS in a community property state

  • March 26, 2025
  • 1 reply
  • 6 views

I have filled out Form 8958 for showing allocation for couple filing MFS; I realize it does not flow anywhere.  My dilemma is getting 1/2 of income and taxes withheld on the 1040 properly.  I also cannot get the spouses wages on the 8958 without an error message.  To the point,

1)  how do I enter both spouses information on the 8958, since the return is MFS?

2)  how do I get 1/2 of the income, interest, taxes, on the 1040.  I have spent several hours on this and had two advisors either hang up after 30 or so minutes or put me on hold for over 30 minutes until I hung up.  Surely other preparers have had this problem!

 

 

 

 

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1 reply

Intuit Community Champion
March 26, 2025

I believe most states only need to allocate income between spouses if they talk to one another. I am in a community property state, and file a few MFS, but never have allocated income, as they never share info with one another

Level 3
March 27, 2025

I understand from the IRS publication that allocation is mandatory in a community property state if they live together, whether they talk to one another or not!  Seriously, have you never allocated?

Just-Lisa-Now-
Intuit Community Champion
March 27, 2025

Im in CA.  If they keep separate maintenance and dont co-mingle their money, I dont do any community splits.

But youre right, the 8958 is useless for us, it doesnt make the process any easier. 

You have to make up dummy W2s/1099R and put 50% for each person.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪