Jim and Nora, residents of a community property state, were married in early 2010.Late in 2010 they separated, and in 2012 they were divorced.Each earned a salary, and they received income from community owned investments in all relevant years.They filed separate returns in 2010 and 2011.
A)In 2011, Nora must report only her salary and one-half of the income from community property on her separate return.
B)In 2011, 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 2012, 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 2012, Nora must report only her salary on her separate return.
E)None of the above.

Question

Quizplus · Accepted Answer

In a community property state, income earned by either spouse during the marriage is considered community income. In 2011, Nora must report her salary and one-half of the income from community property, as they were still married for part of that year.

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