Applying joint estimated tax payments when filing separately.

• Author: Marchbein, Joe

Sometimes, a married couple who has filed jointly in the past and made joint estimated income tax payments for the cur rent tax year, decides to file separately for the current tax year. The question arises as to how the payments should be allocated between the spouses. The answer is in Regs. Sec. 1.6015(b)-1(b), which provides that when a joint declaration of estimated tax is made, but a joint return is not filed for the same tax year, the payments may be treated as being made by either spouse or may be divided between them in any manner agreeable to them. If the spouses do not agree to a division, the payments are to be allocated to each of them in the ratio of each's separate tax to the aggregate tax imposed.

Example: H's 2004 tax is $6,000 and W's is $14,000; their total joint 2004 estimated tax payments were $12,000. Thus, 30% ($6,000/$20,000) of the $12,000 total payment, $3,600, applies to H; 70% ($14,000/$20,0000),$8,400, applies to W.

The regulations cited above were issued under former Sec. 6015, Declaration of Estimated Income Tax by Individuals, which was repealed in 1984.

Current Sec. 6015 contains the innocent spouse roles.As explained in Chief Counsel Advice (CCA) 2000 11047, the...