juan and Estella Garcia live in Washington a community property state juan earned $56, 000 in wages and a stellar earned $74,500 in wages. they will file separate returns. how much juan's wage income will be reported on estella's return
$28000 of Juan's wage income will be reported on Estella's return
Explanation
Community property state means anything husband and wife earned they owned togerher this income include there wages .Community income affect married taxable income in income tax , In case couple live in Community Property state or country and has a wage income during year and filed sperate Return , their community income will there wages and it will be divided by 2 and charge as Income to each as their community income instead of there actual wages as taxable Income
Juan | Estella | Total income Reported as Taxable by each Spouse | |
Actual wages earned | 56000 | 74500 | |
Wages as per community Property stated to be reported |
56000/2 =28000 |
74500/2 =37250 |
28000+37250 =65250 |
Hence Juan wages income which will be reported in Estella income is $28000 and Juan will report Estalla income in his return as $37250
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