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Married filing separate adjustments to income

KAPtax
Level 1

Could someone help explain the proper allocation of adjustments to income for a married couple filing separately in a community property state (CA), specifically resulting from self employment?  Both spouses are self employed.  Are the self employment tax adjustment and/ or QBI deduction split on the MFS return, or do they stay with the spouse with that self employment income like the SE tax?

 

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2 Comments 2
Just-Lisa-Now-
Level 15
Level 15

I make the adjustments on the Other Income line of the returns.

The SE tax stays with the SE person, but Im not sure how the QBI plays out, Im guessing since its an adjustment to income subject to income tax only, it would be split the same as the net profit. you'll probably have to work it into the Adjustment on the Other income line of the return.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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taxgirlshannon
Level 2

 I am having a splitting issue as well.  CA community property.  When I split the return Form 8995 splits the spouse net SE income 50/50, but is splitting the taxpayers SE income 60/30 with 60% being allocated to the spouse for the QBI deduction. 

I cannot for the life of me find where I can override this after the returns are split.

 

 

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