Married Separate Filers:
If the refund received in 2010 was from a jointly-filed federal return, it must be divided between spouses in the ratio of the spouses' net incomes in the year for which the refund was issued.
Example: A 2009 federal refund received in 2010 would be prorated using the spouses' net incomes from the 2009 Iowa return.
For purposes of reporting on line 27, the refund must be prorated in this manner even if the refund itself was divided between spouses in some other way, either by mutual agreement or other requirement.
Example of how to prorate:
Your income is $10,500
Spouse's income is $15,500
Federal refund: $1,200
Divide your income by total income: $10,500 divided by $26,000 = 40%
The spouse's income is, therefore, 60% of their combined income.
In this example, line 27 is $720 (60%) of the federal refund for the spouse, and $480 (40%) of the federal refund for you.
(Other examples of how to prorate)