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How to set a community property state for the MFJ/MFS worksheet in Lacerte

by Lacerte Tax 2018 Updated 1 year ago

The community property states are:

  • AZ - Arizona
  • CA - California
  • ID - Idaho
  • LA - Louisiana
  • NM - New Mexico
  • NV - Nevada
  • TX - Texas
  • WA - Washington
  • WI - Wisconsin

How to indicate a community property for the MFJ/MFS worksheet

To set the community property indicator for every client:

  1. Go to Settings > Options.
  2. Go to the Tax Return tab.
  3. Select the Federal Tax Options section from the left menu.
  4. Scroll to the Community Property State field.
  5. Select Yes or No as applicable.

To set the community property indicator on a client-by-client basis:

  1. Go to Screen 3, Miscellaneous Information/Direct Deposit.
  2. Scroll to the bottom of the Miscellaneous section and enter a or 2 in the field Apply community property rules: 1=no, 2=yes.
    • An entry of 1 in this field will suppress the Form 8958 for MFS filers with a filing address located in a community property state.

Interest and dividend income entered on Screens 11 and 12 will be split 50/50 if marked joint or split, based on taxpayer or spouse designation, if marked as being owned wholly by the taxpayer/spouse.

For more information refer to IRS Pub. 555.

Lacerte Tax

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