e-file MFS

[imjulier]

Working on a return that is MFS (at cleint request...they don't care if MFS vs. MFJ is better) where one spouse claims to live in a community property state and the other does not. I see that I have to complete a form in ATX with income/tax payments for both the filer and spouse in order to be able to e-file. I am not filing the spouse's return and therefore, don't have that information. What are the implications of completing this form with the information I do have since I did prepare the w-2s and S corp return? I would be lacking other income information on the spouse.

Thanks for any info.

Julie

[jainen]

>> I would be lacking other income information on the spouse.<<

I'll let the attorneys figure out about the information, but-- In my opinion, your client (assuming this is the one not in a community property state) is required to file a non-resident return for the community property state reporting his or her share of community income sourced to that state plus all of his own income. And the same world-wide income is presumably taxable in his home state.

[lbbwest]

>> I would be lacking other income information on the spouse.<<

I'll let the attorneys figure out about the information, but-- In my opinion, your client (assuming this is the one not in a community property state) is required to file a non-resident return for the community property state reporting his or her share of community income sourced to that state plus all of his own income. And the same world-wide income is presumably taxable in his home state.

The correct answer in Accounting & Tax is always....it depends. Taxpayer is active military stationed in LA (community property state) Michigan resident; military has right to declare home state, taxpayer owns primary residence in MI, his only income was military pay, (Michigan doesn't tax military pay) future ex-wifes income all from Michigan, she is currently a Alabama resident. (NO Louisiana income involved) THE COMPUTER simply refused to allow him to file mfs without her income on the return, please note NO Louisiana return filed or needs to be filed. Simply required by the programmer due to taxpayer's MAILING ADDRESS. I "fixed it." This is a good example of why if we rely too much on the programmers and not enough on tax law we can inadvertently create unneccessary issus. Have great tax season. lbb

[jainen]

>>This is a good example of why if we rely too much on the programmers<<

In my opinion, this is the opposite of such an example. It is an example of expecting too much from ourselves without getting the best tools available. But why did you tell us "one spouse claims to live in a community property state" anyway? If you told your software that, I would expect it to react the way it did.

[imjulier]

Thanks all for the info. I'm working on the client who lives in a community property state but there is no state income tax (WA). I just have no experience with community property states so didn't know I would have a problem e-filing the return. And the spouse wants nothing to do with me so I can't even tell them if MFJ or MFS is better. I'm going to provide hardcopy for the client to mail return....

Julie