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Subject:  Re: Texas Community Property Laws Date:  3/14/2001  12:52 AM
Author:  iyerp Number:  48370 of 121114

Here is the issue we are researching:

My husband and I were Oregon residents most of 2000 until my husband moved to Texas to take up a new job in October of 2000. I stayed in Oregon for 2000.

We are filing federal and Oregon tax return jointly. But we have stumbled into a community property issue for Oregon return (even if we file jointly). Although Oregon does not tax income my husband earned as a non-resident, and only taxes our combined income from Oregon sources (all of mine and the income my husband earned as an Oregon resident) it appears that because of community property laws in Texas, Oregon may require part of my husband's earnings in Texas to be reported in Oregon return as my income (and thus taxed).

Specifically, Oregon Non-resident and Part-year resident booklet states that one of the other income
sources of Oregon is the community property income. It
states:

If you are a resident of Oregon and your spouse is a
resident of a state with community property laws, you may be subject to tax on part of your spouse's income.
Community property laws in the state where your spouse
lives determines if you are taxed on any of your spouse's income.

Some of the tax consultants we spoke to in Oregon appear to be familiar with Washington's version of community property laws, but not of other community property states. Washington appears to allow the spouses to treat their wages as separate, but we are not convinced that is the case with Texas. And IRS Publication 555 appears to give some information on this light, but again it tells you to reder to state's laws for more information! We spoke to Oregon Department of Revenue as well, and they too don't seem to have any info on Texas version of these laws (but are knowledgeable with Washington's) and asked us to contact Texas for clarification.

Can the tax experts on this board tell me where we can get more information on this topic for Texas? What do Texas community property laws state with respect to this issue? Is there such a thing as Texas Department of Revenue? Is there some website or a place where we can get more information on this topic?

Thank you.
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