Jim and Nora, residents of a community property state, were married in early 2018.Late in 2018 they separated, and in 2019 they divorced.Each earned a salary, and they received income from community-owned investments in all relevant years.They filed separate returns in 2018 and 2019.
A)In 2019, Nora must report only her salary and one-half of the income from community property on her separate return.
B)In 2019, Nora must report on her separate return one-half of the Jim and Nora salary and one-half of the community property income.
C)In 2019 Nora must report on her separate return one-half of the Jim and Nora salary for the period they were married as well as one-half of the community property income and her income earned after the divorce.
D)In 2019, Nora must report only her salary on her separate return.
E)None of these.

Question

Quizplus · Accepted Answer

In community property states, income earned by either spouse during the marriage and income from community-owned property is considered equally owned by both spouses. Therefore, after separation but before the divorce is finalized, Nora must report her salary and one-half of the community property income. Income earned after the divorce is solely the earner's responsibility to report.

Jim and Nora, Residents of a Community Property State, Were