1. (1)

2. (2) 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. If the federal adjusted gross income of husband and wife is entered on a joint federal return, or if neither files a federal return:

   1. (a) Their adjusted gross income shall be entered on their joint Kentucky tax return; or
   2. (b) Separate adjusted gross incomes may be entered on their separate Kentucky tax returns if they so elect.

3. (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:

   1. (a) Income shall be allocated to the spouse who earned the income or with respect to whose property the income is attributable;
   2. (b) Allowable deductions with respect to trade, business, or production of income shall be allocated to the spouse to whom attributable.

Effective: April 11, 1990

History: Created 1990 Ky. Acts ch. 476, Pt. VII D, sec. 639, effective April 11, 1990.