Note: How to Prorate

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Expanded Instructions
  • 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%