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Had one last year. Client received a W-2 for the part of settlement that was for back wages and a 1099 for the rest of the settlement. I also asked for a copy of the final judgement that showed the break down between pain and suffering, emotional distress, medical payments , and punitive damages.

So I am not the only one for which this situation is new. I told this now-client that her situation taught me something I had never, in over 30 years of practice, seen. Filing status of single is correct if "(a) taxpayer is single if unmarried or separated from a spouse, either by divorce or a separate maintenance decree, on December 31." My bold and my, because she called it alimony, misspeak. The payments are separate maintenance. From Topic 452: Alimony or Separate Maintenance – In General Amounts paid to a spouse or a former spouse under a divorce or separation instrument (including a divorce decree, a separate maintenance decree, or a written separation agreement) may be alimony or separate maintenance payments for federal tax purposes. A payment is alimony or separate maintenance if all the following requirements are met: The spouses don't file a joint return with each other; The payment is in cash (including checks or money orders); The payment is to or for a spouse or a former spouse made under a divorce or separation instrument; The spouses aren't members of the same household when the payment is made (This requirement applies only if the spouses are legally separated under a decree of divorce or of separate maintenance.); There's no liability to make the payment (in cash or property) after the death of the recipient spouse; The payment isn't treated as child support or a property settlement; and The divorce or separation agreement does not designate the payment as not includable in gross income of the payee spouse and not allowable as a deduction to the payer spouse. And I also have learned more about CA taxation and community property! This is such a great group, right? And I have a new client

"If they are not actually divorced", she cannot file single can she?

If she files single, the whole discussion is moot. There is no community income if there is no "community". Tom Longview, TX

As you know, taxability of alimony depends on the date of the decree.

Your CA resident and OH resident will file MFS in CA (you file the same for CA as you do for Fed in most cases - I don't see that they qualify for any exception). CA resident will file a 540, claiming all worldwide income less the 50% of community income. OH Resident will file a 540NR, show all worldwide income, and pay tax on the 50% community income. Adjustments to taxable income will be done on Schedule CA 540 NR. Tom Longview, TX

Please tell me I'm not the only accountant geeky enough to plan out the meal prep timing on Excel!