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Author: jaimun Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121351  
Subject: Married filing separately Date: 4/14/1998 2:55 PM
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My wife and I are filing separately and some of our accounts are held jointly. How do we declare the dividends and interest separately? Do we split the amount in half?

Many thanks in advance for any replies.

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Author: SBT1 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3529 of 121351
Subject: Re: Married filing separately Date: 4/14/1998 9:47 PM
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<My wife and I are filing separately and some of our accounts are held jointly. How do we declare the dividends and interest separately? Do we split the amount in half?>

It depends on whether you live in a community property or common law state. Community property states include: Louisiana, Texas, Mexico, Arizona, CA, Washington, Idaho, Nevada, and Wisconsin. If you live in one of these states all property is deemed to belong to the marital community and should be treated as if one-half of the income is earned by each spouse. If the property (stocks, land, etc.) was acquired before the marriage or recieved by gift or inheritance following the marriage, it may be claimed seperatly by each spouse. If you live in a common law state seperate property produces seperate income, and each person is taxed only on their property.

SBT1

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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3610 of 121351
Subject: Re: Married filing separately Date: 4/21/1998 8:55 PM
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[[My wife and I are filing separately and some of our accounts are held jointly. How do we declare
the dividends and interest separately? Do we split the amount in half?]]

Generally speaking, yes. You would each report half of the earnings of the account if they are held jointly.

But the married/separate filing is one of the most MISunderstood filings, and virtually all of the married/separate filings done by the taxpayer themselves are incorrect.

The rules are different for people living in a community property state vs. a separate property state. You might want to check out IRS Publications 504 and 555 at the IRS web site for some additional information, ESPECIALLY if you live in a community property state.

TMF Taxes
Roy

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