MFS / comm prop state and non-US

[Kea]

New client is married and lives in TX (community property) and her husband does not live in US. Last year's tax return shows a SSN for the husband. I do not (yet) know what his income situation or residency status are. I know I have to fill out the community property worksheet if she wants to e-file the return.

My question is what to include on the community property worksheet? If he does not have any US taxable income, I won't enter anything for him. But it doesn't make sense to split off half her income to him if he has no reason to file a US tax return. (I'll ask about him tomorrow when I meet with client. - Just want to make sure I'm asking all the appropriate questions.) I'm guessing it will raise red flags to IRS if I fill out the community property worksheet and allocate 100% to the wife.

Might be best to paper file.

I'm also not sure how to apply community property rules when one lives in a community property state and the other does not (but does live in the US). -- This question is for a different client.

Thanks

[jainen]

>>it doesn't make sense to split off half her income to him if he has no reason to file a US tax return<<

For purposes of determining filing requirements, he is deemed to have U.S. source income because his wife's earnings are subject to community property laws. His own income is subject to whatever rules apply where he resides or is domiciled.