I'm having the same issue with a Married Filing Separate return in CA. I think that the correct way to do it is to modify the amounts in box 1 and box 2 to include half of wages and withholdings, but when I do this I get an error message on the spouses W2 because their filing isn't MFJ. Their preparer last year included the community property adjustment as "Other Income" on Schedule 1 but I really don't think that this is correct.