Harry and Wanda were married in Texas, a community property state, but moved to Virginia, a common law state. The calculation of their income on a joint return:
A)Will increase as a result of changing their state of residence.
B)Will decrease as a result of changing their state of residence.
C)Will not change as a result of changing their state of residence.
D)Will not be permitted.
E)None of the above.

Question

Quizplus · Accepted Answer

The calculation of their income on a joint return will not change as a result of changing their state of residence because federal tax law applies to all states, regardless of their property laws. The concept of community property only applies to community property states, and the IRS allows married couples to file a joint tax return regardless of the property laws of their state of residence.

Harry and Wanda Were Married in Texas, a Community Property