Community Property State Filing

archi_hoo
archi_hoo Member Posts: 1 Newcomer
in State Filing

I live in a Community Property State (Louisiana), and I am married filing separately. My wife and I have completed our federal tax returns by dividing our income and taxes withheld using IRS Form 8958. When it comes to filing the state return for Louisiana, do we continue to divide the numbers from Boxes 16 and 17 on our W-2s, and allocate half our spouse's State Wages and State Income Tax to our own state returns?

Answers

  • GeorgeM
    GeorgeM FreeTaxUSA Agent Posts: 19

    Hello archi_hoo:

    No, you should not have to divide your wages, withholding, and other income when completing your respective LA tax returns.  Because you are filing Married Filing Separately on your respective federal tax returns, and have already divided your income using Form 8958, the amounts you entered on your federal tax return should carry over to your MFS LA tax return.  

    Thus, your MFS LA tax return should include your one-half amount of all community property income, including one-half of all tax withholding regardless of which spouse had the greater amount of tax withholding.  

    While you should not have to adjust any amounts on your respective LA tax returns, if there are any amounts that do not reflect the one-half division you reported on your federal tax returns, then make the necessary adjustment(s). 

Categories