circle3
Jun 20, 2014, 12:12 AM
How is the state income tax deduction handled when filing a dual-status return? IRS rules say that income on my W-2 can not be split with my wife even though we were living in California during our resident part (it's a community property state).
California does not conform to IRS rules on this so I have to adjust my income to split it with my wife on our state return. I have to split withheld state income taxes too. So do I only claim half of the state taxes as a deduction on Schedule A of my federal return?
California does not conform to IRS rules on this so I have to adjust my income to split it with my wife on our state return. I have to split withheld state income taxes too. So do I only claim half of the state taxes as a deduction on Schedule A of my federal return?