When does community income become sole income

[SingleAZdad]

What is the name of your state? AZ

Arizona is a community property state. For the purpose of tax filing status, I'm trying to determine when community income becomes sole/separate income.

I filed for divorce September 2006.

I plan to file Head of Household status (I have sole custody of 2 minor children and I maintain the marital home).

Do I declare my income as sole/separate income or do I have to follow the community property guidelines where my spouse would declare 1/2 of my income?

Any help is greatly appreciated. Thanks in advance.

 

[TinkerBelleLuvr]

http://www.irs.gov/pub/irs-pdf/p555.pdf
see pages 7 - 8
were you apart ALL of tax year 2007? This is when the IRS cares about who is sleeping where.

 

[SingleAZdad]

GinnyJ - thanks for the reply. I read pub 555 and a couple others last night. I'm still a confused.

In a nutshell, the fed tax code is saying I must defer to the state tax code to determine if earned income after separation is still community income or separate income. It depends on when the state draws the line as to the marital community. Apparently some states consider a final decree the end, while others treat the separation as the end. I'm having trouble figuring out which type of state Arizona is.

I have tried to find the correct AZ publication, but the last one I read referred back to the federal publication. I feel like I'm trapped in a circle.

If anyone knows AZ tax code, please respond. Thanks.

 

[SingleAZdad]

were you apart ALL of tax year 2007? This is when the IRS cares about who is sleeping where.

we were together for about 6 weeks in 2007 (tried to reconcile - didn't work).

 

[TinkerBelleLuvr]

For Arizona purposes, income earned by each spouse during marriage is generally considered to be community income. When separate Arizona income tax returns are filed, each spouse must report one-half of the total community income. Separation of the spouses generally will not change the character of such earnings until a final divorce decree is entered. When separate Arizona income tax returns are filed, each spouse remains taxable on one-half of the total community income even though the spouses may be separated. However, due to a change in Arizona law, certain community income, depending on the tax year, may be treated as separate income for Arizona income tax purposes when spouses file separate Arizona returns.

http://www.azdor.gov/ResearchStats/rulings/itr93-22.htm

Have you considered seeing a tax professional in Arizona? Look for someone with experience.

 

[SingleAZdad]

Yeah, I think I'm going to use a CPA this year. Tax software may not be a good idea this year.