![]() If you and your spouse file separate returns, you have to determine your community income and your separate income. However, sometimes it can be to your advantage to file separate returns. Your tax usually will be less by filing joint returns if you are married. Community Property - How to Figure Your Income.Ĭommunity property laws affect how you figure your income on your state and federal returns if you're married and file separate returns. For more information on community property, see IRS Publication 555 (PDF), Community Property. It also ends when the decree of dissolution becomes final or when the couple separates with no intention of rejoining. All property declared separate property in a valid pre- or post-nuptial agreement is also separate property.Ĭommunity property ends when either one of the spouses dies. ![]() Separate property also includes money earned while domiciled in a separate property state. It includes all property acquired separately after marriage, such as gifts or inheritances. Separate property is all property owned separately by the husband or wife before marriage. Each spouse owns an equal share of all community property. This means that all property married couples acquire while domiciled in California is community property. Do You Know How Community Property Laws Affect Your Taxes?Ĭalifornia is a community property state. If you earn income and pay taxes in more than one state, see California Schedule S (PDF). You may have received income that is taxable in California and in your own resident state as well. If you are a nonresident, the same situation may apply. ![]() You earned income in another state and paid taxes, then moved to California and did the same. If you paid taxes on the same income in both states, you may be entitled to a tax credit. Let's say you moved to California in the middle of the year. You may have received income that is taxable in two or more states. Are You Entitled to Other State Income Tax Credit?
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