IRS Publication 555

AAA

DEFINITION of 'IRS Publication 555'

A document published by the Internal Revenue Service (IRS) that provides information to taxpayers who are married, live in a state supporting community property laws and are filing separate tax returns. Income and property is considered community if it is purchased or owned while the couple is married. All else is considered separate. Couples filing separately report half of their joint income and all of their separate income.

INVESTOPEDIA EXPLAINS 'IRS Publication 555'

Not all states treat community property the same way. IRS Publication 555 only addresses Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. If the tax payer's primary residence is in one of these states, or if residency has been established by voting or by paying state income tax, then community property rules are likely to apply.


Married taxpayers will typically have a lower tax obligation if a joint return is filed rather than an individual return, but this is not always the case.

RELATED TERMS
  1. IRS Publication 504

    A document published by the Internal Revenue Service that provides ...
  2. IRS Publication 505

    A document published by the Internal Revenue Service that outlines ...
  3. Marital Property

    A U.S. state-level legal distinction of a married individual's ...
  4. Community Property

    A U.S. state-level legal distinction of a married individual's ...
  5. Community Income

    Income earned by taxpayers who live in community property states. ...
  6. Married Filing Separately

    A filing status for married couples who choose to record their ...
Related Articles
  1. 10 Steps To Tax Preparation
    Taxes

    10 Steps To Tax Preparation

  2. Happily Married? File Taxes Separately!
    Taxes

    Happily Married? File Taxes Separately!

  3. Newlyweds? Tips For Filing Your Tax ...
    Taxes

    Newlyweds? Tips For Filing Your Tax ...

  4. 10 Money-Saving Year-End Tax Tips
    Taxes

    10 Money-Saving Year-End Tax Tips

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center