Updated October 21, 2026. Quick answer: Publication 555 is the IRS guide to how community property law affects a federal return, and the web edition is the 12/2024 revision. It says that if you file separately from your spouse, you must report half of all community income and all of your separate income. Form 8958 is how the two returns show the split.
Quick reference
| Item | As the IRS publication states it |
|---|---|
| Share of community income reported on a separate return (Community or Separate Property and Income) | half |
| Alimony paid before divorce is taxable to the payee only above this share of community income (Alimony received) | 50% |
| Lump-sum distribution option for people born before January 2, 1936 (Lump-sum distributions) | 10-year tax option |
| Civil service pay example, community income out of $1,000 a month (Civil service retirement) | $500 |
| Basis example after a spouse dies, each half of a $100,000 FMV (End of the Community) | $50,000 |
What the publication covers
The introduction says “Community property laws affect how you figure your income on your federal income tax return if you are married, live in a community property state or country, and file separate returns.” It adds that “Community property laws also affect your basis in property you inherit from a married person who lived in a community property state.”
The IRS page for this edition reads “Revised: December 2024”. This page describes that edition, as the title carries 12/2024.
Who the publication is written for
The publication says “This publication is for married taxpayers who are domiciled in one of the following community property states.” The list names Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. See also our overview of the community property states.
Registered domestic partners are covered too. The IRS says “RDPs aren’t married for federal tax purposes.” It continues, “They can use the single filing status or, if they qualify, the head of household filing status.”
On where you live, the publication says “You have only one domicile even if you have more than one home.” It also says “Your intent is the determining factor in proving where you have your domicile.”
Community or separate: the basic split
For separate returns the rule is “If you file a federal tax return separately from your spouse, you must report half of all community income and all of your separate income.” The publication adds “You each must attach your Form 8958 to your return showing how you figured the amount you are reporting on your return.”
Table 1 in the publication, General Rules for Property and Income, sums up which items are community and which are separate. One caution from its notes is “In Idaho, Louisiana, Texas, and Wisconsin, income from most separate property is community income.” Our page on Idaho community property and separate income follows that state point.
Income, deductions and credits
Retirement accounts get their own treatment. The publication says “IRAs and ESAs by law are deemed to be separate property.” For a lump sum from a qualified plan it says “For the 10-year tax option, you must disregard community property laws.” The related form is covered at Form 4972.
On alimony, it says “Alimony or separate maintenance payments made prior to divorce are taxable to the payee spouse only to the extent they exceed 50% (his or her share) of the reportable community income.” The same section notes that for instruments executed after 2018 the payments are not deductible by the payer and not income to the recipient. See Schedule 1 lines 2a and 2b, alimony received.
Other topics in the chapters on income and on credits, taxes and payments include dividends, interest and rents, gains and losses, pensions, civil service and military retirement pay, partnership income, the child tax credit, self-employment tax, withheld tax, estimated tax payments and the earned income credit.
Spouses living apart and the end of the community
A special rule can switch community treatment off. The publication says “If you are married at any time during the calendar year, special rules apply for reporting certain community income.” It also says “You must meet all the following conditions for these special rules to apply.” There are four conditions, and the first is that you and your spouse lived apart all year.
On death, the publication says “If you own community property and your spouse dies, the total fair market value (FMV) of the community property, including the part that belongs to you, generally becomes the basis of the entire property.” Its example ends with “The basis of Blake’s half of the property is $50,000 after Taylor died (half of the $100,000 FMV).” Our page on the community property double step up goes further into that rule.
For a divorce it says “An absolute decree of divorce or annulment ends the marital community in all community property states.”
Joint or separate returns
The publication frames the choice this way: “Ordinarily, filing a joint return will give you a greater tax advantage than filing a separate return.” Among the married filing separately rules it lists is “You can’t take the EIC.” For the filing-status side of a year with a divorce, see filing status in the year of divorce.
Where this comes from
The IRS page About Publication 555 opens with “Publication 555 discusses community property laws that affect how you figure your income on your federal income tax return if you are married, live in a community property state or country, and file separate returns.” It links the PDF and eBook editions and the earlier revisions of the publication.
This page describes the web edition of Publication 555 (12/2024), Community Property, as served on irs.gov on October 21, 2026. The IRS can revise a publication after we read it, and the IRS page controls. General information, not tax or legal advice.
Common mistakes
- Assuming one spouse’s wages belong only to that spouse on a separate return. The publication says “A spouse’s (or an RDP’s) wages, earnings, and net profits from a sole proprietorship are community income and must be evenly split.”
- Treating a registered domestic partner as married for federal purposes. The IRS says “RDPs aren’t married for federal tax purposes.”
- Thinking IRA withdrawals split evenly like wages. The publication says “These distributions are wholly taxable to the spouse (or RDP) whose name is on the account.”
- Skipping Form 8958 because the returns are separate. The publication says “You each must attach your Form 8958 to your return showing how you figured the amount you are reporting on your return.”
Related: IRS publications by number, Community property states, Community property double step up, Idaho community property and separate income, Form 4972, Schedule 1 lines 2a and 2b, alimony received, and Filing status in the year of divorce.
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Answer againSources
- IRS, Publication 555 (12/2024), Community Property (irs.gov): https://www.irs.gov/publications/p555
- IRS, About Publication 555, Community Property (irs.gov): https://www.irs.gov/forms-pubs/about-publication-555
Read from the IRS pages linked above on October 21, 2026. General information, not tax or legal advice. The IRS publication and the instructions for your own form control, and your own facts decide the outcome.