How to Prorate

Taxpayers using filing status 3 (married filing separatly) may be required to prorate (divide) certain entries on the IA 1040.

Example 1: How spouses would prorate a federal refund:

2022 federal refund received in 2023 from a jointly-filed return: $1,000
Spouse A has net income of $15,000 on the 2022 IA 1040.
Spouse B has net income of $30,000 on the 2022 IA 1040.
Total net income: $45,000 on the 2022 IA 1040.

Divide Spouse B's net income by total net income. $30,000 ÷ $45,000 = 66.7%
The result is the percent of total net income earned by Spouse B.

Then multiply the total 2022 federal refund amount by the result above $1,000 X 66.7% = $667. This is Spouse B's portion of the refund, reported on the 2023 IA 1040, Schedule 1, line 14.

Subtract Spouse B's portion of the refund from the total 2022 federal refund amount. $1,000 - $667 = $333. This is Spouse A's portion of the refund reported on the 2023 IA 1040, Schedule 1, line 14.

Note: Round to the nearest one-tenth of a percent. For example, 66.74% becomes 66.7% and 66.75% becomes 66.8%