Any IRS Form similar to IRS Form 8958 for use in NY State for splitting incomes & deductions in TP/SP joint names for MFS

[Raj1]

Any IRS Form similar to IRS Form 8958 for use in NY State for splitting incomes & deductions in TP/SP joint names for MFS

June 9, 2020

• For MFS tax returns, how to report split of equally funded joint incomes and deductions between TP and SP.  E.g. In community property state like CA, IRS Pub 555 stipulates IRS Form 8958 for allocation between TP & SP for Community States.  But NY is not a community State, so is there a similar form for NYS?
• If there is no IRS prescribed allocation form, will an excel file mimicking Form 8958 work if it is attached as a PDF to both the MFS tax returns during EFile?
• IRS Pub 550 page 18 middle column (and on several other pages) talks about “Nominee Distributions” and suggests cumbersome procedure of TP issuing 1099-Int / 1099-Div to the Spouse etc. and vice versa but in the same column in the subsequent para states “However, you do not have to file Form 1099-Int to show payments for your Spouse”.  Also, internal issuance of 1099s is a very cumbersome procedure and has to be done by a specific date which is already passed for 2019 tax returns. 

Any thoughts / clarifications / updates would be highly appreciated.

Thanks and Regards.

Raj1

[sjrcpa · Accepted solution]

NY is not a community property state.

If they are joint accounts, just enter half.

Keep a spreadsheet for yourself showing the computation.

[Raj1]

Thanks for your prompt reply. 

Yes, NYS is not a community state like CA, but was wondering if there is any form similar to Form 8958 used by the Community State which can be used by the non-community State like NY. 

If we just split 50:50, but if the IRS is not communicated of the split, they come asking to the person who has the tax doc in his/her name why he/she is not showing 100% amount if it is an income (e.g. bank interest, dividend etc.) and asks the other joint filer how he/she got 50% amount of deduction (e.g. Mortgage Int) without any tax docs in his/her name.