The community property states are:
- AZ - Arizona
- CA - California
- ID - Idaho
- LA - Louisiana
- NM - New Mexico
- NV - Nevada
- TX - Texas
- WA - Washington
- WI - Wisconsin
How to indicate a community property for the MFJ/MFS worksheet
To set the community property indicator for every client:
- Go to Settings > Options.
- Go to the Tax Return tab.
- Select the Federal Tax Options section from the left menu.
- Scroll to the Community Property State field.
- Select Yes or No as applicable.
To set the community property indicator on a client-by-client basis:
- Go to Screen 3, Miscellaneous Information/Direct Deposit.
- Scroll to the bottom of the Miscellaneous section and enter a 1 or 2 in the field Apply community property rules: 1=no, 2=yes.
- An entry of 1 in this field will suppress the Form 8958 for MFS filers with a filing address located in a community property state.
Interest and dividend income entered on Screens 11 and 12 will be split 50/50 if marked joint or split, based on taxpayer or spouse designation, if marked as being owned wholly by the taxpayer/spouse.
For more information refer to IRS Pub. 555.
