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Sched C income is community income, just like wages. The only trick is that you'll have to override the SE calcs, as you need to hit the correct spouse for the SE tax on all of their income. That part is still separate. And the spouse picking up the 1/2 of Sch C income (the one that isn't self-employed) will also need an override to make sure they don't pay SE tax.

I'd guess that unemployment is also community income. And that the 401k withdrawal is not. But don't quote me on those.

Do you happen to use Lacerte? If so, I've found their tool to split a joint return into separate returns is pretty good. Just make sure that all of the income and deductions are properly coded as taxpayer, spouse, or joint.

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