Scenario - married couple who chose not to live together all of 2008 - husband lived in CA all of 2008 (community property state) and spouse lived in North Carolina and Montana (non-community property states). If couple files MFS, I am having a little trouble in determining how to divide income and expenses. Can I just apply all income and expenses to the person who received the income/expenses (the easy way), or being CA is involved, do I have to split husband's income/expenses between husband and wife even if wife did not live in CA at all?? And then, being wife lived in non-community states, husband would not have to file in those states?? Your help would be much appreciated!
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Married Couple in Different States
I have a similar situation - Husband in NY, Wife and son in Massachusetts.
What I do - and was advised by my software company - and it's worked for the past few years - is - prepare MFJ for Federal, and, prepare two part-year residence returns for the period 1/2-12/31 - calculating each respective spouse's items on the respective individual state returns.Uncle Sam, CPA, EA. ARA, NTPI Fellow -
Community Property State
My concern is the community property state of CA - being wife did not live in CA at all. Would I need to file a CA return for her based on 1/2 of husband's income and expenses and then for the non-community states in which wife lived, she would need to file returns based on her income and then husband would not have to deal with those states as he didn't live in those states?? What a mess......I think I am getting myself more confused!Comment
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Domicile vs Residency
I believe you will first have to determine domicile status vs actual residency.
Here are some links that might assist you
SandyComment
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Community Property State
Thanks Sandy - very helpful!!
Peggy SiouxComment
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