RDP Tax Preparation for California Residents

RDP Tax Preparation can be real headache.

So lets peel aways the onion layers to talk about what you need to know in order to prepare your registered domestic partners tax return for CALIFORNIA RESIDENTS (although, fyi, our firm is pretty darn good at and it’s probably a good idea to call us at 626.280.6865 and have us do it)

RDP Tax Preparation in California requires you the do the following:

  • Create a federal return as married filing joint in order to create a married filing state return
  • Create a federal return that split your income in half per community property rules for you and your spouse.

In other words, when it’s all said and done, you’ll have three returns to send in:

  1. Single Federal with split income
  2. Single Federal with spilt income
  3. Married Filing Joint State return

RDP Tax Preparation Income Splitting

RDP Tax Preparation is confusing at the federal level because the IRS, in a landmark ruling, said that RDPs and same-sex couples MUST follow community property rules for federal filing purposes.

This can be a good thing. This can be a bad thing. It all depends on YOUR situations.

In other words, you really have to do the math in order to figure out if this will increase or decrease the amount you owe to the government.

So, you half your income. You half your expenses. But, it ain’t that easy. You have to report what the IRS has on file for federal purposes, and then back everything out to split it.

Honestly, this is our business and it ain’t easy. And we’ve gone to seminars and been doing this or a couple of years. Bottom line: have a professional prepare your taxes. Call us today at 424.253.0200.