You and your spouse do not file a joint return for a tax year beginning or ending in the calendar year. You or your spouse has earned income for the calendar year that is community income. Do not take into account transfers satisfying child support obligations or transfers of very small amounts or value. If all these conditions exist, you and your spouse must report your community income as explained in the following discussions. Treat earned income that is not trade or business or partnership income as the income of the spouse who performed the services to earn the income.
Earned income is wages, salaries, professional fees, and other pay for personal services.
Earned income does not include amounts paid by a corporation that are a distribution of earnings and profits rather than a reasonable allowance for personal services rendered. Trade or business income. Treat income and related deductions from a trade or business that is not a partnership as those of the spouse carrying on the trade or business. If capital investment and personal services both produce business income, treat all of the income as trade or business income. Partnership income or loss.