Income allocation information is required when electronically filing a return with a Married Filing Separately or Registered Domestic Partner status in the Individual module of ProConnect. Refer to the information below to assist with questions regarding Community Property Income Allocation.
ProConnect doesn't automatically split retirement distributions. Because of this, you'll need to manually enter adjustments in the taxpayer/spouse split returns, after the split is complete.
When Community Property options are set to:
- No - The program will allocate all items according to the "taxpayer" and "spouse" designators.
- Yes - The program will net all wages and business income or loss and allocate 50% to each spouse on the MFJ/MFS worksheet. The program allocates all other income and deductions (including pensions) according to the "taxpayer" and "spouse" designators.
Follow these steps to override the community property designation:
- From the Input Return tab, go to General ⮕ Miscellaneous Information/Direct Deposit.
- Select the Miscellaneous tab at the top of the input screen.
- Scroll down to Apply community property rules: 1=no, 2=yes.
Unemployment Compensation Exclusion was not extended further, meaning it only applies to tax year 2020.
This will override the selection set in your Program Options on a client-by-client basis.
