This page provides more information about community property, separate property, and filing income tax returns.
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You must use the same filing status for your Idaho income tax return that you use for your federal income tax return.
Both Idaho residents and domiciled in Idaho
Filing “Married filing jointly”
- Both of you must report all community income and separate income.
Filing “Married filing separately”
- Each of you must report half of the community income and deductions (e.g., community income and expenses from a business or investment, or personal expenses paid from community funds).
- Each of you must report your separate income and deductions (e.g., separate investment income and the related expenses).
- If one of you itemizes, the other must also itemize.
- Both of you must attach a copy of the worksheet showing the allocation of community income and expenses.
One spouse domiciled in Idaho, the other spouse domiciled in a separate-property state
- The income the spouse domiciled in Idaho earned is community property.
- The income the spouse domiciled in a separate property state earned is separate property.
Because the income of a spouse domiciled in Idaho is community property, the Idaho spouse reports half of the community income, plus any of his or her separate income from separate property.
The spouse domiciled in the separate-property state reports the other half of the community income from Idaho sources to Idaho and his or her income from the separate property from Idaho sources.
Example 1
- Bill is domiciled in Idaho. He earned $20,000 in wages for the year. He’s married to Pam.
- Pam is domiciled and resides in Oregon, which is a separate-property state. She earned $30,000 in wages.
- Bill and Pam file “married filing jointly” on their federal income tax return, Form 1040. They file an Idaho Form 43.
What Bill does
Bill, as a resident of Idaho, must include his share of the community income from all sources on the joint Idaho return. That’s half of Bill’s wages, or $10,000.What Pam does
Pam, as a nonresident of Idaho, must include her share of the community income from Idaho sources on the joint Idaho return. That’s the other half of Bill’s wages, or $10,000. Pam doesn’t include her wages of $30,000 because it’s separate property not sourced to Idaho and isn’t taxed by Idaho.
Example 2
Assume the same facts as in Example 2, but Bill and Pam are filing “married filing separately.”
What Bill does
Bill files a Form 40 as a resident of Idaho. He includes his share of the community income from all sources. That’s half of the $20,000 from his wages, or $10,000. He doesn’t report any of Pam’s wages.What Pam does
Pam files a Form 43 as a nonresident of Idaho. She reports her share of community income from Idaho sources. That’s half of Bill’s wages, or $10,000.Spouses domiciled in different community-property states
Usually:
- The spouse who’s domiciled in Idaho reports half of all the community income.
- The spouse who’s domiciled in another community-property state and a nonresident of Idaho reports half of the community income from Idaho sources.
Example 3
- Joe is domiciled in Idaho. He earned wages of $40,000 during the year. He’s married to Samantha.
- Samantha is domiciled and resides in Nevada, a community property state. Samantha earned $60,000 in wages.
- They file a joint federal income tax return Form 1040. So, they must file a joint Idaho tax return, too.
What Joe does
Joe is an Idaho resident. He must include his share of the community income from all sources on the joint Idaho return. That is:- Half of his wages, or $20,000
- Half of Samantha’s wages, or $30,000
What Samantha does
Samantha is a nonresident of Idaho. She’s only required to include her share of the community income from Idaho sources on the joint Idaho return. That is:- Half of Joe’s wages, or $20,000
Filing for year of divorce
You must use the same filing status on your Idaho return that you use on your federal return. Choose a filing status for the year based on your legal marital status on the last day of the year (December 31).
- Legally divorced: File as Single. (You can file as Head of Household if you qualify.) Report half your joint income plus all your separate income. See Example 4, below.
- Separated but not legally divorced: File either as Married filing separately or Married filing jointly. (You can file as Head of Household if you qualify.) The default is typically Married filing separately, but you and your spouse can choose to file jointly.
- If Married filing separately and you’re both domiciled in Idaho: Include half your joint income plus all your separate income. If your spouse itemizes, you must also itemize unless you file as Head of Household. You and your spouse will each file your own returns.
- If Married filing jointly: Include all your and your spouse’s income. You and your spouse will file only one return that you’ll both sign.
- If you have children or dependents: You can file as Head of Household if you qualify. You don’t have to itemize if your spouse chose Married filing separately and itemized.
Joint income is any income you and your spouse receive through your final divorce date. Income you receive after that date is separate income.
Example 4
George and Kate are residents of Idaho and domiciled in Idaho. They divorced on July 1. Their income for the year was as follows:
- George earned $28,000 from January to June. He earned $32,000 from July to December.
- Kate earned $25,000 from January to June. She earned $22,000 July to December.
What George does
George reports $58,500 on his separate return at the end of the year:- Half his first six months’ income = $14,000
- Half Kate’s first six months’ income = $12,500
- All his second six months’ income = $32,000
What Kate does:
Kate reports $48,500 on her separate return at the end of the year:- Half her first six months’ income = $12,500
- Half George’s first six months’ income = $14,000
- All her second six months’ income = $22,000
Accounting for withholding and estimated tax payments
Withholding credit
Claim the credit for income tax withholding in the same way you reported the income.
- Community income: Each of you reports half the income and half the withholding on your separate returns.
- Separate income: The spouse who earned the separate income should report all that income and the related withholding.
Estimated tax payments
From community funds: Credit is split evenly between spouses. However, due to internal processes, the credit goes to the spouse the payment was made for.
From separate property funds: Credit goes to the spouse the payment was made for.