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 505

    A document published by the Internal Revenue Service that outlines ...
  2. IRS Publication 504

    A document published by the Internal Revenue Service that provides ...
  3. Married Filing Separately

    A filing status for married couples who choose to record their ...
  4. Married Filing Jointly

    A filing status for married couples that have wed before the ...
  5. Marital Property

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

    A U.S. state-level legal distinction of a married individual's ...
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. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  2. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  3. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  4. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  5. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
  6. Direct Participation Program - DPP

    A business venture designed to let investors participate directly in the cash flow and tax benefits of the underlying investment. ...
Trading Center