Injured spouse form allocations

[DTS]

I wanted to know your thoughts on how to allocate a saver's credit (only one had the deferred income) and SE tax (only one had self-employment) shown on the return.

I'm not sure how to handle this and can't find guidance. Both benefit from the saver's credit and both have to pay the SE tax on the return.

My initial thought was to allocate these items to the person that put them on the return, but I'm second-guessing myself.

Thank you,

D

[ChEAr$]

By all means,

I wanted to know your thoughts on how to allocate a saver's credit (only one had the deferred income) and SE tax (only one had self-employment) shown on the return.

I'm not sure how to handle this and can't find guidance. Both benefit from the saver's credit and both have to pay the SE tax on the return.

My initial thought was to allocate these items to the person that put them on the return, but I'm second-guessing myself.

Thank you,

D

Adhere to the secret of success in accounting: Allocate and Pro rate.

But IRS will have the last word, and perhaps if the couple is in a community property
state (read Communist state!) that might make a difference, eh what/

[WhiteOleander]

I would allocate the way you see fit. IRS will do as they please. I was told several years ago that someone sued the IRS under freedom of info act to get the process the IRS uses to determine how they allocate the income/refund. The request was denied and that decision was upheld in court. If that is true, then we are taxed by a secret method!

[Lion]

Credits/Deductions follow the person

I'd allocate credits and deductions about like you would on a MFS return. And, as has been mentioned, don't fret over it too much as the IRS will do their own thing.

[DTS]

Thanks to all of you that jumped in.

My software is allocating the credit and the SE tax to the other spouse, as well as, the withholding, which just does not seem right to me, especially the w/h.

I will do as a community property state would have us do and see what happens at the other end!

Thanks, again!

D

[ChEAr$]

one idea

Thanks to all of you that jumped in.

My software is allocating the credit and the SE tax to the other spouse, as well as, the withholding, which just does not seem right to me, especially the w/h.

I will do as a community property state would have us do and see what happens at the other end!

Thanks, again!

D

You say each spouse had se income; therefore each had a source of said income,
whether iit be schedule c or K1. If schedule c, then the spouse's name is on the heading.
But for a K1 which posts to a joint schedule e, is there not some way to mark spousal
origin of the income?
For instance, in Taxwise, one fills out the K1 for the spouse and that routes it to the correct schedule se.

[DTS]

You say each spouse had se income; therefore each had a source of said income,
whether iit be schedule c or K1. If schedule c, then the spouse's name is on the heading.
But for a K1 which posts to a joint schedule e, is there not some way to mark spousal
origin of the income?
For instance, in Taxwise, one fills out the K1 for the spouse and that routes it to the correct schedule se.

Harlan,

I should have been more clear when posting. Sorry about that. Only one person has SE income and the SE tax. The other spouse has the saver's credit.

I did assign each of the items to the specific spouse it belonged to, but for some reason, the program is not assigning the items correctly on the form. Even the withholding the injured spouse paid on his W-2 is being assigned to the non-injured spouse. I've wondered if there is a reason for this, assuming the software is correct, which I am not making that assumption.

I am thinking that I should either do this the way I originally wanted to do or like I was filing a MFS for CA. It's in the hands of the IRS anyway.

D

[ChEAr$]

I'm tempted to ask

what software do you use.

My favorite, Taxwise, makes the correct allocations on the form, even the RIC
which flows from both 1099R forms (for distributions needed for the three
year lookback) to the entry on worksheet pertaining to the spouse who made
the contributions or the amount on the W2 form denoted by the "d". in box 12.

[DTS]

Harlan

I use TaxWorks. It usually allocates everything just great, but it appears that it's not on this form.

D