KRS 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 sep arately 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.