Sentences with phrase «mfj in community property state»

In community property states, a prenup will supersede the state's law, allowing you to pre-designate who gets what in the case of divorce.

In addition, your spouse may be liable for your debt if you lived in a community property state.

If you don't live in a community property state and no one cosigned the loan, the lender will attempt to collect from your estate but has no recourse if there's not enough money.

A spouse could also be held responsible for the debt if you lived in a community property state.

You live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington or Wisconsin)

Disputed Derogatory Credit Accounts of a non-borrowing spouse in a community property state are not included in the $ 1,000 + cumulative balance for determining if the mortgage application is downgraded.

What if «John and Jane» from the example above lived in a community property state?

This may also apply to couples who reside in community property states.

It depends on whether there is a joint cardholder if the deceased person was married, and if the person lived in a community property state.

If you live in a community property state: Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin the surviving spouse is responsible for debts incurred by the account holder during his or her marriage — even if the surviving spouse did not cosign.

Let's take a closer look at how purchasing in a community property state can complicate the process.

In a community property state, John and Jane could file separate tax returns.

This opened the door for higher - income couples in community property states to shift income and lower their tax burden as compared to couples in common law states.

Remember, your beneficiary can be anyone you want as long as you don't live in a community property state and have a spouse.

Update: Our guidelines have changed regarding a non-purchasing spouse's credit history in a community property state.

In community property states such as Arizona, all income earned by either spouse belongs equally to both.

@NateEldredge Generally in community property states, debts are automatically taken on by both spouses jointly.

A spouse could also be held responsible for the debt if you lived in a community property state.

Taxpayers and elected officials in community property states protested.

There are significant differences between them when it comes to transferring assets, and a document drafted in a common law property state might not be appropriate in a community property state.

And even in community property states, debt before the marriage is not joint debt.

If you didn't have a joint cardholder and didn't live in a community property state, available money will be collected from your estate but the credit card issuer would have to walk away from any debt in excess of that.

Collection accounts for non-purchasing spouses need to also be considered in community property states (like Wisconsin).

Check with your accountant, but because you're in a community property state, your income is community property and would be split like that.

I feel this is not representative of the one person's income in community property state but Pub 555 makes us all report it that way, even though it's not indicidual income rather community income.

We are trying to do our taxes this year and have reached out to a tax professional at H&R Block here in California, who seemed to know nothing about MFS in a community property state.

However, in community property states the lower earner will always report higher AGI than their gross salary because of Pub 555 forces the tax payer to report on 1040 line 22 = (a + b) / 2.

Whether or not debt can be transferred to a spouse depends on whether or not the deceased person lives in a community property state — including Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin and Alaska.

If this is an application for an individual account and you are relying on your own income or assets (in community property states, separate income or assets) and not the income or assets of another person (or community property) for repayment of the credit requested, questions relative to marital status and to income resources and assets of the spouse need not be answered.

Estate planning can reduce any capital gains tax that a surviving spouse in a community property state will face when selling jointly held property inherited from the spouse who passed away.

John and: Jane have the same amount of income but live in a community property state.

When you live in a community property state and file separate returns, you each must report 50 percent of your spouse's income and half of income generated by community assets, plus all of your separate income.

The IRS suggests married couples in community property states look at their tax situation under both joint and separate filing options to determine which version saves them the most (TurboTax will do this for you).

However, married taxpayers who live in community property states and filed to file joint tax returns may still qualify.

As mentioned earlier, if you reside in a community property state and select someone other than your spouse as the beneficiary, your spouse is required to sign a form acknowledging that they agree to give up their rights to the insurance proceeds.

However, in community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin and Alaska, which is an opt - in community property state), creditors may pursue a surviving spouse to settle a debt.

While this typically resolves the problem, in community property states, where a husband and wife are presumed to own assets jointly, there can be issues with such an approach.

Married couples in community property states soon discovered that they could save money by employing community property laws to split income.

This means that domestic partners in community property states have to allocate their income.

FHA requires judgments of a non-purchasing spouse in a community property state to be paid in full, or meet the exception guidance for judgments above, unless excluded by state law.

Unless excluded by state law, collection accounts of a non-purchasing spouse in a community property state are included in the cumulative balance of all collections.

The Internal Revenue Service (IRS) created Form 8958 to allow couples in community property states to correctly allocate income to each spouse that may not match what is reported to the IRS.

What is Form 8958: Allocation of Tax Amounts Between Certain Individuals in Community Property State

In this case, the spouse who is not applying for the loan would only have a financial obligation if he or she co-signed or co-borrowed on the mortgage or if the loan was executed in a community property state.

Note 1: Collections accounts of a non-purchasing spouse in a community property state are included in the cumulative balance.

Put simply, in a community property state, a spouse is responsible for debts incurred in the marriage regardless of which spouse's name is on them.

In reality, spousal debt in the United States depends on the type of state you live in, namely, whether it is a community property state or common law state.4 In a community property state, you are not responsible for any debt your spouse incurred before marriage, but are jointly responsible for debt incurred by either of you going forward.

Here in Part 2, I'll explore what happens when a same - sex couple in a community property state moves to a non-community property state such as Iowa during the middle of the year.

Even though the federal government doesn't recognize same - sex marriages, the IRS says that couples in same - sex marriages or domestic partnerships (RDPs) in community property states must apply community property laws on their separate federal tax returns.

If you live in a community property state, and acquired student loan debt through marriage, you could be liable to pay off your spouse's debt after his / her passing.