Different filing status for CA

[Kimberley]

Non-RDP couple living in separate states all year.  He owns a primary residence in Texas prior to marriage and has a W2 from Texas.  She owns a primary residence in California prior to marriage and has W2 income from California.

For federal purposes, they want to file joint.  For California, they should be able to file MFS.  I cannot figure out how to make this happen in Lacerte.

Thankful for your guidance.

[George4Tacks]

This will mean 3 separate Files - 1 as MFS, the 1 for each spouse for MFS. Be sure to consider community property rules. 

https://accountants.intuit.com/support/en-us/help-article/tax-filing-status/generate-mfj-vs-mfs-comp...

https://accountants.intuit.com/support/en-us/help-article/tax-filing-status/split-married-filing-joi...

[BobKamman]

Yes, it's all community income unless some exception applies (like a prenup).  

[itonewbie · Accepted solution]

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@Kimberley wrote:

Non-RDP couple living in separate states all year.  He owns a primary residence in Texas prior to marriage and has a W2 from Texas.  She owns a primary residence in California prior to marriage and has W2 income from California.

For federal purposes, they want to file joint.  For California, they should be able to file MFS.  I cannot figure out how to make this happen in Lacerte.

Thankful for your guidance.

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If they file MFJ for federal, RTC § 18521(a)(1) mandates that they use the same filing status for CA tax purposes.  The only exception provided for is under (c)(2), which stipulates that one spouse must be "a nonresident for the entire taxable year" and that the nonresident spouse must have "no income from a California source".

While the husband may satisfy the first part of (c)(2) for being a nonresident for the entire year, he will fail the second part by virtue of the wife's CA-source wages being allocable to him at 50% by community property rules.  On that basis, they should not be able to file MFS in CA unless they also file MFS for federal.