26 USC 879 – Tax treatment of certain community income in the case of nonresident alien individuals
(a) General rule
In the case of a married couple 1 or both of whom are nonresident alien individuals and who have community income for the taxable year, such community income shall be treated as follows:
(1) Earned income (within the meaning of section 911(d)(2)), other than trade or business income and a partner‘s distributive share of partnership income, shall be treated as the income of the spouse who rendered the personal services,
(2) Trade or business income, and a partner’s distributive share of partnership income, shall be treated as provided in section 1402(a)(5),
(3) Community income not described in paragraph (1) or (2) which is derived from the separate property (as determined under the applicable community property law) of one spouse shall be treated as the income of such spouse, and
(4) All other such community income shall be treated as provided in the applicable community property law.
(b) Exception where election under section 6013(g) is in effect
Subsection (a) shall not apply for any taxable year for which an election under subsection (g) or (h) of section 6013 (relating to election to treat nonresident alien individual as resident of the United States) is in effect.
(c) Definitions and special rules
For purposes of this section—
(1) Community income
The term “community income” means income which, under applicable community property laws, is treated as community income.
(2) Community property laws
The term “community property laws” means the community property laws of a State, a foreign country, or a possession of the United States.
(3) Determination of marital status
The determination of marital status shall be made under section 7703(a).