141.016 Reporting federal adjusted gross income attributed to husband and wife -- Allocation of income and business deductions between husband and wife

141.016 Reporting federal adjusted gross income attributed to husband and wife --

Allocation of income and business deductions between husband and wife.

(1) If the federal adjusted gross income of husband or wife is entered on a separate

federal return, their Kentucky adjusted gross incomes may be entered on their

separate Kentucky tax returns or their joint Kentucky tax return as they so elect.

(2) If the federal adjusted gross income of husband and wife is entered on a joint

federal return, or if neither files a federal return:

(a) Their adjusted gross income shall be entered on their joint Kentucky tax

return; or

(b) Separate adjusted gross incomes may be entered on their separate Kentucky

tax returns if they so elect.

(3) Where husband and wife have not separately reported and claimed items of income

and adjustments of income for federal income tax purposes, and have not elected to

file a joint Kentucky income tax return, such items allowable for Kentucky income

tax purposes shall be allocated and adjusted as follows:

(a) Income shall be allocated to the spouse who earned the income or with respect

to whose property the income is attributable;

(b) Allowable deductions with respect to trade, business, or production of income

shall be allocated to the spouse to whom attributable.