Personal Finance (Not Investing) • Community property income

I am a bit confused on community property income reporting rules. What I understand so far is what I read verbatim:

Community property

California is a community property state. When filing a separate return, each spouse/RDP reports the following:

One-half of the community income
All of their own separate income

Link: https://www.ftb.ca.gov/file/personal/fi ... ately.html

Lets say Partner 1 makes 100k a year
lets say partner 2 makes 80k a year

then what I read is that while filing separate taxes they report:

partner 1: 100k + 40k (80/2) as income = 140k
partner 2: 50k (100/2) + 80k as income = 130k

thats reporting and paying taxes for 270k income.

Should it not be (100k + 80k)/2 for each, which is 90k vs the 140 and 130 cause thats a rip off to both...

Let me know if I understood this incorrectly.

Statistics: Posted by Ledzep91 — Tue Aug 06, 2024 10:35 pm — Replies 3 — Views 289

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