Discussion:Do you split income after divorce in community property state?

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Discussion Forum Index --> Tax Questions --> Do you split income after divorce in community property state?


Deductive reasoning (talk|edits) said:

11 October 2006
Confused about how wage income is supposed to be handled for income tax purposes after a divorce in Idaho, a community property state. Is income earned before the divorce was final (in this case, Aug 2005) split between both parties, even though there was only one wage earner? Or does all the income, aside from alimony, and taxes withheld belong to the wage earner? Where is this specifically described? Publication 504 is confusing -- couldn't figure it out from there.

Solomon (talk|edits) said:

11 October 2006
Pub. 555

Jdugancpa (talk|edits) said:

11 October 2006
I've always split income until the "marital community" has been broken up. So if the couple separates 6 months prior to the divorce and sets up separate bank accounts, typically that is when the marital community has broken. If they continue to operate a joint checking account after splitting up continuing until the divorce, the marital community is probably still in operation.

DZCPA (talk|edits) said:

12 November 2006
(For California)Assume Husband W2- I show 100% on return and back out wife portion on same return with a note -"community prop port to SS #123-12-1234". On wife return I show only the husbands portion with a note "comm prop portion from SS #321-32-3211"

Riley2 (talk|edits) said:

14 November 2006
This is a matter of state law. My understanding of Idaho CP law is that post-separation earnings are still treated as community income. This differs, for example, from California CP law which holds that post-separation earnings are generally separate property.

Death&Taxes (talk|edits) said:

14 November 2006
Odd, but doing some CPE work today using PPC and twice their answer to a question is that the community income ends with the decree. Maybe they are using Texas law or CA law.

Yt1300inHtown (talk|edits) said:

29 February 2012
Bumping this old thread for same question.

Allocating the wages and witholding up until the divorce on paper is easy but how do I report on the client's 1040?

Kevinh5 (talk|edits) said:

29 February 2012
The same as you would if they filed MFS - nominee off and nominee on.

Kevinh5 (talk|edits) said:

29 February 2012
I think the IRS Pub (is it 555?) on CI has a suggested spreadsheet.

Kevinh5 (talk|edits) said:

29 February 2012
http://www.irs.gov/pub/irs-pdf/p555.pdf Page 10

Yt1300inHtown (talk|edits) said:

29 February 2012
Thanks Kevin. I found it in the pub 555 towards the back.

Yt1300inHtown (talk|edits) said:

29 February 2012
DOH! beat me to it

Kevinh5 (talk|edits) said:

29 February 2012
Yeah, but neither of us realized it was mentioned earlier in this post already.  :{

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