Discussion:E-filing a MFS return, community property state

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Discussion Forum Index --> Tax Questions --> E-filing a MFS return, community property state


Ddspetersen (talk|edits) said:

10 February 2007
I'm a CPA who's used this site several times as part of my research (Kleinrock is my primary research tool), but I can't seem to find an answer on this one, so I've logged-on for the 1st time to ask a question.

I've got a married couple that moved from CA to WA in Nov. 2006 (both community property states). They want to file separately for reasons relating to old debts and one of the taxpayers wants to e-file. I have the information to do the MFS income allocation necessary to e-file, but I know when you do a paper return you should include a schedule showing total W-2 & other income and the division between the spouses (in this case, all is community income). Will e-filing work if I input the W-2 information at 1/2 on each return (I use Lacerte) or will it reject because the W-2 info doesn't match up? Also, is there a way to attach a schedule with the e-file showing allocation of the W-2's or is that something I would have to mail in to the IRS after e-file was accepted?

THanks for your help!

CATAXES (talk|edits) said:

10 February 2007
Lacerte Screen 4. You don't change return info.

Ddspetersen (talk|edits) said:

11 February 2007
I had already done the MFS allocation (screen 4), but that doesn't seem to help with the W-2 totals (screen 10). If I input the W-2 amounts as they are, I don't get the correct totals for MFS on each tax return. Any other advice?

Ddspetersen (talk|edits) said:

12 February 2007
Just in case anyone else runs across this...I went ahead and tried efiling with wages input at 1/2 of the amounts printed on the W-2s and it was accepted.

Beengel (talk|edits) said:

February 12, 2007
Maybe someone can explain- if someone chooses MFS, and does not have enough deductions to itemize, don't you just report the appropriate earned income for each, and then split anything that is joint?



I'm not sure if I fully understand your question, but I think one thing you want to know is that if one person who files MFS uses the standard deduction, the other must do the same. -- Larry Hess, CPA, Albuquerque, NM - Talk to me

Beengel (talk|edits) said:

February 12, 2007
To clarify- my question above is in regards to a NON community property state... and I understand that some credits are limited.

CATAXES (talk|edits) said:

12 February 2007
MFS allocation seems to work just fine. What you are inputing on screen 4 is the income reported on the return for the "other" spouse. It's not supposed to split them, just report them. Of course getting the "other" spouse's info is usually the problem.

Ddspetersen (talk|edits) said:

12 February 2007
That's definitely the truth (getting the other spouse's info)!! This is the 1st time I've had a married couple who SHARES their info wanting to do MFS with e-file. Always something to keep me on my toes!

CATAXES (talk|edits) said:

13 February 2007
Last year we filed about 350 individual returns. 347 were e-file. 3 MFS in community property state were paper returns for Feds (CA still takes e-file in this case) becaues client spouse didn't even know where ex spouse was. Pain in the butt.

Txtaxmaster (talk|edits) said:

14 February 2009
I have a client (in Texas) who got back together with her husband in August after a long separation. He REFUSES to file with her or give her any of his income information for MFS. Their income was deposited into a joint bank account. She's very concerned that he's going to be filing illegally, and she wants to only follow the law. All I can think to tell her is that we can try to piece together his income information and put a statement with the MFS allocation to reflect that his information is estimated. Anyone have any other thoughts or suggestions for relief on this one?

Lhhesscpa (talk|edits) said:

14 February 2009
You might find an alternative, more fact-based, way to go on a MFS return in Sec. 66(b) & Reg. 1.66-3 -- Larry Hess, CPA | Albuquerque, NM

Txtaxmaster (talk|edits) said:

15 February 2009
I don't see where either of these cites refers to a "hostile" spouse who refuses to provide w-2 or other income information.

Riley2 (talk|edits) said:

15 February 2009
I agree. 66(b) really is a tool used by the IRS when there is a uncooperative spouse. The taxpayer cannot unilaterally decide to invoke 66(b).

Slmiddlebrook (talk|edits) said:

6 April 2009
I am using ProSeries and I have a married couple that wants to file MFS in Washington (community property). I have both taxpayers information, I just cannot get the software to split the income and expenses. Can you point me in the right direction please?

Shannon

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