hgtc
Level 5

For CA taxpayers, when split MFJ to MFS, Lacerte will split W-2 income taxes withholdings and other tax credits.  

Does income tax withholdings automatically split in IRS's system?  Or, do taxpayer need to ask IRS for all tax credits to be split between spouses?

0 Cheers
Karl
Level 8
Level 8

Lacerte splits fed & state withholdings along with wages.  There's a Form 8958 that reconciles the MFS return to the W-2 the IRS has.  CA FTB gets a copy of the federal return, and ergo the form 8958 to figure out the same thing.

*If this (or another answer/reply) solves your problem, please click "Accept as Solution" to get this post out of the "Unanswered" queue of posts.*
jerry
Level 5

Yes, but be sure to check "Apply community property rules" on Screen 3, and make sure that all income that you want split evenly (other than wages) is "joint."

Of course, you should always make sure that there's no pre-nup or other reason why you wouldn't use community property rules - like they were separated the whole year with no intent to reconcile.

Now, as to what the IRS does, that's a whole 'nother question.  My experience is about 10% of the time they confused by split withholding, and put a hold on a refund - usually the wage earner!

Also, if there were estimated tax payments made in only 1 SSN, there's about a 50-50 chance you will be on the phone with PPS re-allocating it evenly.

 

View solution in original post

Karl
Level 8
Level 8

Good details Jerry, thank you!

Yes, I'll echo the estimates.  Find out how they were made and split them accordingly. I forgot to do that on one of mine this year, and both IRS and FTB are sending adjustment notices. Ugh, a headache.

*If this (or another answer/reply) solves your problem, please click "Accept as Solution" to get this post out of the "Unanswered" queue of posts.*
0 Cheers
hgtc
Level 5

Thank you all.

0 Cheers