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How do I enter the return information into ProConnect to allocate the income in a community property state to a couple who want to file married filing separately?

Should I fill out the federal form to allocate the income or let the software do it?
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0 Cheers
4 Replies 4

Thank you so much.  I did that but my understanding is that the husband has to report his wages and Sch C income and half her wages and Schedule C income and so does she.  Do I say that the wages and Sch C income are joint or ?  

Also, I think these people should report MFS anyway so would I have to prepare a return for each one of them then?

I really appreciate your thoughts!

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Level 15

@deniserevell3 wrote:

...I did that but my understanding is that the husband has to report his wages and Sch C income and half her wages and Schedule C income and so does she.  Do I say that the wages and Sch C income are joint or ?  


It sounds like you may not be familiar with community property rules.  First it depends on where the spouses are domiciled (and it could different for both).  Then, you look at whether the income is from community or separate property, the type of income, deductions, credit, tax payments, etc.  Below is the IRS pub that could help you understand the basics.

https://www.irs.gov/publications/p555


Also, I think these people should report MFS anyway so would I have to prepare a return for each one of them then?

Spouses don't need to file MFS.  There are tax and non-tax reasons for and against MFS, depending on the spouses' circumstances.

It is also not necessary for both spouses to engage the same preparer.  For example, if the couple is going through a divorce, many would argue that it's better not to represent both spouses due to potential conflict of interest.

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Still an AllStar
Level 15

This will have to be a manual process.  See this thread for how this should be done in PTO:

https://proconnect.intuit.com/community/proconnect-tax-discussions/discussion/federal-and-ca-married...

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Still an AllStar