PRIA Logo™
Title 26 — Internal Revenue CodeRelease 119-73

§66 Treatment of Community Income

Title 26 › Subtitle Subtitle A— Income Taxes › Chapter 1— NORMAL TAXES AND SURTAXES › Subchapter B— Computation of Taxable Income › Part I— DEFINITION OF GROSS INCOME, ADJUSTED GROSS INCOME, TAXABLE INCOME, ETC. › § 66

Last updated Apr 6, 2026|Official source

Summary

In community property states, income earned during a marriage is normally treated as belonging to both spouses. Special rules can change that. If you and your spouse live apart for the entire year, do not file a joint return, and none of the earned income is shared between you before year-end, special rules apply to how that earned community income is split for tax purposes. The IRS can also deny you community property benefits if you acted like income was entirely yours and never told your spouse about it before the return was due. And if a piece of community income that really came from your spouse was left off your return, you did not know and had no reason to know about it, and taxing you on it would be unfair, you can be relieved of tax on that item.

Full Legal Text

Title 26, §66

Internal Revenue Code — Source: USLM XML via OLRC

(a)If—
(1)2 individuals are married to each other at any time during a calendar year;
(2)such individuals—
(A)live apart at all times during the calendar year, and
(B)do not file a joint return under section 6013 with each other for a taxable year beginning or ending in the calendar year;
(3)one or both of such individuals have earned income for the calendar year which is community income; and
(4)no portion of such earned income is transferred (directly or indirectly) between such individuals before the close of the calendar year,
(b)The Secretary may disallow the benefits of any community property law to any taxpayer with respect to any income if such taxpayer acted as if solely entitled to such income and failed to notify the taxpayer’s spouse before the due date (including extensions) for filing the return for the taxable year in which the income was derived of the nature and amount of such income.
(c)Under regulations prescribed by the Secretary, if—
(1)an individual does not file a joint return for any taxable year,
(2)such individual does not include in gross income for such taxable year an item of community income properly includible therein which, in accordance with the rules contained in section 879(a), would be treated as the income of the other spouse,
(3)the individual establishes that he or she did not know of, and had no reason to know of, such item of community income, and
(4)taking into account all facts and circumstances, it is inequitable to include such item of community income in such individual’s gross income,
(d)For purposes of this section—
(1)The term “earned income” has the meaning given to such term by section 911(d)(2).
(2)The term “community income” means income which, under applicable community property laws, is treated as community income.
(3)The term “community property laws” means the community property laws of a State, a foreign country, or a possession of the United States.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1998—Subsec. (c). Pub. L. 105–206 inserted at end “Under procedures prescribed by the Secretary, if, taking into account all the facts and circumstances, it is inequitable to hold the individual liable for any unpaid tax or any deficiency (or any portion of either) attributable to any item for which relief is not available under the preceding sentence, the Secretary may relieve such individual of such liability.” 1989—Subsec. (d)(1). Pub. L. 101–239 substituted “section 911(d)(2)” for “section 911(b)”. 1984—Pub. L. 98–369, § 424(b)(2)(A), struck out “where spouses live apart” in section catchline. Subsec. (a). Pub. L. 98–369, § 424(b)(2)(B), substituted “Treatment of community income where spouses live apart” for “General rule” in heading. Subsecs. (b) to (d). Pub. L. 98–369, § 424(b)(1), added subsecs. (b) and (c) and redesignated former subsec. (b) as (d).

Statutory Notes and Related Subsidiaries

Effective Date

of 1998 AmendmentAmendment by Pub. L. 105–206 applicable to any liability for tax arising after July 22, 1998, and any liability for tax arising on or before such date but remaining unpaid as of such date, see section 3201(g)(1) of Pub. L. 105–206, set out as a note under section 6015 of this title.

Effective Date

of 1984 AmendmentAmendment by Pub. L. 98–369 applicable to all taxable years to which the Internal Revenue Code of 1986 [formerly I.R.C. 1954] applies with corresponding provisions deemed to be included in the Internal Revenue Code of 1939 and applicable to all taxable years to which such Code applies, except subsection (b) of this section is applicable to taxable years beginning after December 31, 1984, see section 424(c) of Pub. L. 98–369, set out as a note under section 6013 of this title.

Effective Date

Pub. L. 96–605, title I, § 101(c), Dec. 28, 1980, 94 Stat. 3522, provided that: “The

Amendments

made by this section [enacting this section] shall apply to calendar years beginning after December 31, 1980.”

Reference

Citations & Metadata

Citation

26 U.S.C. § 66

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73