Federal Allocation of Tax Amounts Between Certain Individuals in Community Property States

Allocation of Tax Amounts Between Certain Individuals in Community Property States
Form 8958 (Rev. November 2023)
8958

Form
(Rev. November 2023)
Department of the Treasury
Internal Revenue Service

Allocation of Tax Amounts Between
Certain Individuals in Community Property States

OMB No. 1545-0074

Attach to Form 1040, 1040-SR, or 1040-NR.
Go to www.irs.gov/Form8958 for the latest information.

Attachment
Sequence No. 63

Your first name and initial

Your last name

Your social security number (SSN)

Spouse’s or partner’s first name and initial

Spouse’s or partner’s last name

Spouse’s or partner’s SSN

A
Total Amount

B
Allocated to Spouse
or RDP
SSN

-

-

C
Allocated to Spouse
or RDP
SSN

-

-

1 Wages (each employer)

2 Interest income (each payer)

3 Dividends (each payer)

4 State income tax refund
5 Self-employment income (see instructions)

6 Capital gains and losses

7 Pension income

8 Rents, royalties, partnerships, estates, trusts

For Paperwork Reduction Act Notice, see your tax return instructions.

Cat. No. 37779G

Form 8958 (Rev. 11-2023)

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Form 8958 (Rev. 11-2023)

A
Total Amount

B
Allocated to Spouse
or RDP
SSN

-

-

C
Allocated to Spouse
or RDP
SSN

-

-

9 Deductible part of self-employment tax (see
instructions)

10 Self-employment tax (see instructions)

11 Taxes withheld

12 Other items such as social security benefits,
unemployment compensation, deductions,
credits, etc.

Form 8958 (Rev. 11-2023)

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Form 8958 (Rev. 11-2023)

General Instructions
Future developments. For the latest information about
developments related to Form 8958 and its instructions, such as
legislation enacted after they were published, go to www.irs.gov/
Form8958.

Purpose of Form
Use Form 8958 to allocate tax amounts between spouses or
registered domestic partners (RDPs) with community property
rights, who file separate income tax returns. If you need more room,
attach a statement listing the source of the item and the total plus
the allocated amounts. Be sure to put your name and social security
number (SSN) on the statements and attach them at the end of your
return.
Community property laws affect how you figure your income on
your federal income tax return if you are spouses or RDPs, live in a
community property state or country, and file separate returns.
This form is intended for individuals who:
1. Are subject to community property laws, and
2. File separate federal income tax returns.
See Pub. 555, Community Property, for more information.

Community or Separate Income
You must report half of all community income and all of your
separate income on your federal income tax return if you file a
federal income tax return separately from your spouse or RDP.
Generally, the laws of the state in which you are domiciled govern
whether you have community income or separate income for federal
tax purposes.
Generally, community income is income from:
• Community property;
• Salaries, wages, or pay for services of you, your spouse or RDP,
or both during your marriage or registered domestic partnership; or
• Real estate that is treated as community property under the laws
of the state where the property is located.
Generally, income from separate property is the separate income
of the spouse or RDP who owns the property.
Special rules apply for spouses living apart all year and for
spouses one or both of whom are nonresident aliens.
For more information, see Pub. 555.

Identifying Income and Deductions
You and your spouse or RDP must be able to identify your
community and separate income, deductions, credits, and other
return amounts according to the laws of your state.

Income
The following is a discussion of the general effect of community
property laws on the federal income tax treatment of certain items
of income.
Wages and self-employment income from sole proprietorship.
A spouse’s or RDP’s wages and self-employment income from a
sole proprietorship are community income and must be evenly split.
Interest, dividends, and rents. Interest, dividends, and rents from
community property are community income and must be evenly
split.
Gains and losses. Gains and losses are classified as community or
separate depending on how the property is held.
Withdrawals from individual retirement arrangements (IRAs).
There are several kinds of IRAs. Distributions of IRAs by law are
deemed to be separate property, even if the funds in the account
would otherwise be community property.

These distributions are wholly taxable to the spouse or RDP
whose name is on the account. That spouse or RDP is also liable for
any penalties and additional taxes on the distributions.
Pensions. Generally, distributions from pensions will be
characterized as community or separate income depending on the
respective periods of participation in the pension while married (or
during the registered domestic partnership) and domiciled in a
community property state or in a noncommunity property state
during the total period of participation in the pension. These rules
may vary between states.
Partnership income. If an interest is held in a partnership, and
income from the partnership is attributable to the efforts of either
spouse or RDP, the partnership income is community property.
Income. For spouses, community income exempt from federal tax
generally keeps its exempt status for both spouses. For example,
under certain circumstances, income earned outside the United
States is tax exempt. If you earned income and met the conditions
that made it exempt, the income is also exempt for your spouse
even though your spouse may not have met the conditions. RDPs
should consult the particular exclusion provision to see if the
exempt status applies to both partners.
Income from separate property. In some states, income from
separate property is separate income. Other states characterize
income from separate property as community income.
For more information, see Pub. 555. For specific information that
pertains to your situation, check with the laws of your state.

Deductions
If you file separate returns, your deductions generally depend on
whether the expenses involve community or separate income.
Business and investment expenses. Expenses incurred to earn or
produce community business or investment income are generally
divided between you and your spouse or RDP. See Pub. 555 for
more information.
IRA deduction. Deductions for IRA contributions cannot be split
between spouses or RDPs. The deduction for each spouse or RDP
is figured separately and without regard to community property
laws.
Personal expenses. Expenses that are paid out of separate funds,
such as medical expenses, are deductible by the spouse or RDP
who pays for them. If these expenses are paid from community
funds, divide the deduction equally between you and your spouse
or RDP.
Deductible portion of self-employment tax. The deductible
portion of the self-employment tax is split only when the selfemployment tax is split.

Credits, Taxes, and Payments
Self-employment tax. Although the self-employment tax rules
contain a provision that overrides community income treatment in
the case of spouses (section 1402(a)(5)), this provision does not
apply to RDPs. RDPs split self-employment income from sole
proprietorships and partnerships for self-employment tax purposes.
The following rules apply only to persons married for federal tax
purposes.
Sole proprietorship. With regard to net income from a trade or
business (other than a partnership) that is community income, selfemployment tax is imposed on the spouse carrying on the trade or
business.

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Form 8958 (Rev. 11-2023)

Partnerships. All of the distributive share of a married partner’s
income or loss from a partnership trade or business is attributable
to the partner for computing any self-employment tax, even if a
portion of the partner’s distributive share of income or loss is
community income or loss that is attributable to the partner’s
spouse for income tax purposes. If both spouses are partners, any
self-employment tax is allocated based on their distributive shares.
Federal income tax withheld. If you and your spouse file separate
returns on which each of you reports half the community wages,
each of you is entitled to credit for half the income tax withheld on
those wages. Likewise, each RDP is entitled to credit for half the
income tax withheld on those wages.

Line 7
Enter the pension income from each payer on separate lines. Enter
the total from each payer in column A and allocate the total from
column A between each spouse or RDP in columns B and C.

Line 8
Identify the rent, royalty, partnership, estate, or trust item(s) on
separate lines. Enter the total(s) from each item(s) in column A and
allocate the total(s) from column A between each spouse or RDP in
columns B and C.

Line 9

To determine estimated tax payments, earned income credit, and
overpayments, see Pub. 555 for more information. For specific
information that pertains to your situation, check with the laws of
your state.

Identify the deductible part of self-employment tax from each entity
on separate lines. Enter the total from each entity in column A and
allocate the total from column A between columns B and C.

Specific Instructions

Identify the self-employment tax from each entity on separate lines.
Enter the total from each entity in column A and allocate the total
from column A between columns B and C.

How To Complete Form 8958
To complete Form 8958, identify your community or separate
income, deductions, credits, and other return amounts on the
separate lines under the item name on lines 1 through 12.
Enter the total amount of your community or separate income,
deductions, credits, and other return amounts on their respective
lines in column A. Enter each spouse’s or RDP’s allocation of these
amounts in columns B and C. Together, columns B and C should
equal column A.

Line 1
Identify the wages from each payer on separate lines. Enter the total
from each payer in column A. Allocate the total from column A
between each spouse or RDP in columns B and C.

Line 2
Identify the interest from each payer on separate lines. Enter the
total from each payer in column A and allocate the total from
column A between each spouse or RDP in columns B and C.

Line 3
Identify the dividends from each payer on separate lines. Enter the
total from each payer in column A and allocate the total from
column A between each spouse or RDP in columns B and C.

Line 4
Identify the state income tax refund from each payer on separate
lines. Enter the total from each payer in column A and allocate the
total from column A between each spouse or RDP in columns B
and C.

Line 5
Identify the self-employment income from each entity on separate
lines. Enter the total from each entity in column A and allocate the
total from column A between each spouse or RDP in columns B
and C.

Line 6
Enter the gain or loss from each entity. Enter the total from each
entity in column A and allocate the total from column A between
each spouse or RDP in columns B and C.

Line 10

Line 11
Identify the taxes withheld from each payer or entity on separate
lines. Enter the total from each payer or entity in column A and
allocate the total from column A between each spouse or RDP in
columns B and C.

Line 12
Identify any item not previously reported, such as social security
benefits, unemployment compensation, deductions, credits, etc., on
separate lines. Enter the total from each item in column A, then
allocate the total from each item from column A between each
spouse or RDP in columns B and C.
Paperwork Reduction Act Notice. We ask for the information on
this form to carry out the Internal Revenue laws of the United
States. You are required to give us the information. We need it to
ensure that you are complying with these laws and to allow us to
figure and collect the right amount of tax.
You are not required to provide the information requested on a
form that is subject to the Paperwork Reduction Act unless the form
displays a valid OMB control number. Books or records relating to a
form or its instructions must be retained as long as their contents
may become material in the administration of any Internal Revenue
law. Generally, tax returns and return information are confidential,
as required by section 6103.
The average time and expenses required to complete and file this
form will vary depending on individual circumstances. For the
estimated averages, see the instructions for your income tax return.
If you have suggestions for making this form simpler, we would
be happy to hear from you. See the instructions for your income tax
return.