How do I handle filing returns for taxpayers who are California Registered Domestic Partners?
The IRS does not recognize registered domestic partners (RDPs) for purposes of filing a federal Married filing jointly or Married filing separately return. Taxpayers in a RDP must file federal tax returns using the filing status of Single, or if qualified, Head of Household. For CA purposes, taxpayers in a RDP may use Married filing jointly or Married filing separately.
In Drake Tax:
- Create a joint federal return and complete all screens as either taxpayer or spouse (as entered on screen 1).
- Do not choose J in the TSJ box on any screen. For example, if itemizing deductions, complete two A screens, one for each, with only that taxpayer's deductions listed. Similarly, any dependents must be marked as either taxpayer or spouse.
- In CA data entry, complete the RDP screen.
- Split the return, but select to keep all three (the MFJ and each MFS).
- On each MFS return, change the filing status to either Single or HOH for federal purposes. Be sure to suppress CA e-filing on the split returns.
- The joint return can be used to prepare the California return with the filing status of RDP. Be sure to suppress Federal e-filing on the joint return.
See CA FTB FAQs on Registered Domestic Partners for more information.