I'm stuck trying to solve a really-existing problem regarding a redistribution of funds. Any help would be greatly appreciated.
A married couple decided to file taxes this year separately instead of jointly.
Suppose Spouse A, by filing separating, receives a tax return of $1,000. Spouse B, on the other hand, has to pay the government $300. Their
"joint"
return is therefore $700.
The couple, however, regretted filing separately, and now needs to know how to equitably redistribute the return from Spouse A to Spouse B.
Specifically, they want to know how much Spouse A has to pay Spouse B if the joint return were to be divided evenly between the two parties (as if they had filed jointly in the first place).
The answer cannot be $350 since that implies Spouse A netted $1000 - $350 = $650, while Spouse B receives $50 (i.e., $350 - $300).
How do you determine the correct allocation?
Thank you!
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