- Instruction Year: 2023
How to Prorate
Taxpayers using filing status 3 (married filing separately) 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 รท $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%