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@BobKamman wrote:

I have clients with $140K in W-2 income, $30K in capital gains and $18K in unemployment.  Already filed a joint return, for refund.  Now I can do superseding MFS returns.  Still wondering, with a community income split, does each report $9K in unemployment and exclude all of it?

New subsection 85(c) says that the modified AGI be determined "without regard to this section."  If what they meant was "without regard to this subsection," that's what they could have said.  

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Ah, so your clock is already ticking on MFJ > MFS.  I do very few returns from CP states.  I would think that as long as the community still exists (not separated, no abandoned spouses, etc.) that the income would split 50/50 and "each spouse" would get the $10.2K limit.