Deisy Martinez, a married taxpayer and a new client, metwith you last week to discuss her 2012 tax return. In previousyears, she has filed her tax returns as “single” because she andher husband are separated and do not live together. Ms. Martinez, asole proprietor, earned $100,000 during the year from her business.On the other hand, her husband earned $40,000 as a teacher. Theydid not have any other income in 2012, and they did not transferany funds to each other. After the meeting, you question whether“single” is the proper filing status for Ms. Martinez. Since sheand her husband live in Texas, you are also not sure whether theyshould split their community property income. Ms. Martinez does nothave any children.
What is Deisy Martinez’s filing status for 2012? Should she and herhusband split their community property income on their individualreturns? Research these issues and write a letter to Ms. Martinezwith your conclusions. In your letter, you should explain the rulesfor marital status and community property income. Her address is500 Elizabeth Street, Brownsville, Texas 78520.
Could you please give me the answer and also provide the citationsas to where they are.