In a community property state (CA to be specific), are the income allocations on Part III of Form 8379 governed by the rules of the state? For example, say spouse 1 has $60K in W-2 income and spouse 2 has $40K. Are each allocated $50K on the form, or is each listed with the amount shown on the W-2? Thank you.
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Yes, the amounts earned/paid by the Community are split equally in half, each spouse is allocated half of the totals. I assume the spouses lived together during the year and the Community was still intact.Circular 230 Disclosure:
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Injured spouse does not work very well in community property states, as the community income can be used to satisfy the debts of either spouse."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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