We moved to Washington State last year which is Community Property State. We (myself and spouse) don't have any community income (income generated by shared assets) ; We both have income reported in W2 forms and interest income(1009-INT). We are planning to use 'Married Filing Separately' status this time because of the tax situation. Do we (myself and spouse) still need to file Form 8958 when we do Federal return, even though all our income are only from employment (w2) and interest(1099-INT) ?
1 Answer
These two claims: We ... don't have any community income
and We both have income reported in W2
- they're contradicting each other. Earned income is generally community property (See the statute).
As to interest income - it may or may not be community, depending on what the interest was for and on what account.
-
1So, Earned Income (even though we both work for different employers) is considered as community property income in Washington State and we both required to file form 8958 with our federal return. Is that correct?– Sur EshApr 10 at 18:23
-
@SurEsh yes, and if you're commingling your earned income with your separate properties you may have tainted what you thought was separate. Apr 10 at 18:46