Social security benefits of surviving spouse

Before taxpayer passed away, he and his surviving spouse signed an agreement that all their assets were considered 'community property'.

As for the social security benefits that the surviving spouse is getting now, is it to be reported as income 1/2 and 1/2 in the deceased taxpayer's estate tax return and the surviving spouse's personal tax return?

The social security benefits are from the job that the surviving spouse had before her retirement.

Per Pub 555: "Social security benefits. Treat social security and equivalent railroad retirement benefits as the income of the spouse who receives the benefits."

Thank you.

But the statement that you quotes is under the section "Community Property Laws Disregarded" in Pub 555. The section lists out a few special circumstances that the Community Property Laws are to be disregarded. But I cannot think of any reason why the Comunnity Property Laws are to be disregarded in their particular situation.

It's in the IRM, Part 25. Special Topics, Chapter 18. Community Property.

"These [including Social Security Benefits] are by law deemed to be separate property. See IRM 25.18.1.3.28, Federal Preemption of State Community Property Characterization, for additional information. "

Also, I'm pretty sure it is irrelevant that "The social security benefits are from the job that the surviving spouse had before her retirement."

Social Security benefits are not community property; the entitlement, as determined by federal law, is solely for the individual who earned the benefit.

There is of course a spousal benefit, but that's defined by the SS program rather than by reference to any community property laws or agreements. It's the same whether or not you live in a CP state.

It's not relevant here but a CA appeals court affirmed that contributions to Social Security (FICA/SECA) aren't from community property either, so were not factored into property division in divorce. The same is not true of deferred compensation or pension contributions.

The benefit is income of the person who is getting it now. It is not an asset of the deceased's estate. There is no community property in a community of one.