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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2855
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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I am in the process of filing taxes. I live in California, a

Customer Question

I am in the process of filing taxes. I live in California, a community property state and my fililing status has changed from married filing jointly to married filing separately.I am required to file form 8958 (Allocation of tax amounts between married filing separate spouses). In 2015, I elected to have have money deducted from my pay for an FSA dependent care spending account. The total pretax deduction $4680. Because I have changed my filing status, my excluded dependent care benefits are $2500 and $2180 of this money will be taxed, adding this money to my taxable income.Also. My husband pays into mandatory California SDI fund. Are these monies allocated to as a with holding amount?Is 1/2 of this amount allocated to my spouse and if so, how and where is it allocated
Submitted: 10 months ago.
Category: Tax
Customer: replied 10 months ago.
Sorry for the typo. As stated above , An additional $2180 is now added to my income. Of course , this amount is not reflected on my W2. Am I correct in assuming that I should allocate 1/2 of the 2180 to my husbands income. If so, how and where is it allocated. Would I just include or add this to his wages?
Expert:  Barbara replied 10 months ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Since you are the owner of the FSA dependent care spending account, it is not considered community property, and you would not allocate 1/2 of the $2180 to your husband's income on Form 8958.

The following link contains excellent information regarding community vs. separate property:

https://www.irs.gov/publications/p555/ar02.html#en_US_201412_publink1000168756

Please let me know if you require further information or clarification. If so, please come back to me here, and I will be happy to assist you further. If not, please take a moment to rate my answer since that is the only way I receive credit for answering you and alerts Just Answer to compensate me for a portion of the fee you previously paid.

Thank you and best regards,

Barb

Customer: replied 10 months ago.
Hi. Thank you for your response. What about money paid into california SDI
Expert:  Barbara replied 10 months ago.

State Disability benefits are considered income and under CA law are subject to community property laws. Therefore, the deduction for CA SDI are subject to community property laws and would be entered on Line 12 of Form 8958.

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