Contents Introduction   ........................................................ 1 Domicile  .............................................................. 2 Community or Separate Property and Income 2 Community Property Laws Disregarded  .......... 2 End of the Marital Community  .......................... 4 Federal Income Tax Return Preparation   ......... 4 Joint Return Versus Separate Returns   ........... 4 Identifying Income and Deductions   ................. 5 Example ........................................................... 6 Allocation Worksheet   ........................................ 9 How To Get More Information   .......................... 10 Index  .................................................................... 12 Introduction This   publication   is   for   married   taxpayers   who   are domiciled in one of the following community property states: • Arizona, • California, • Idaho, • Louisiana, • Nevada, • New Mexico, • Texas, • Washington, or • Wisconsin. This publication does not address the federal tax treatment of income or property subject to the “com- munity property” election under the Alaska state laws. 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. Your tax usually will be less by filing a joint return if you are married. Sometimes it can be to your advantage to file separate returns. If you and your spouse file separate returns, you have to de- termine your community income and your separate in- come. Community property laws also affect your basis in property you inherit from a married person who lived in a community property state. See Death of spouse, later. Useful Items You may want to see: Publication 504 Divorced or Separated Individuals 505 Tax Withholding and Estimated Tax Department of the Treasury Internal Revenue Service Publication 555 (Rev. October 1999) Cat. No. 15103C Community Property