Section 117.2. Returns of married individuals

(a) Liability for tax. If husband and wife determine their income tax liability on a separate return under this article, their income tax liabilities under this article shall be separate. If husband and wife determine their income tax liabilities on a joint return under this article, their income tax liabilities shall be joint and several.

(b) Different residences. If either husband or wife is a resident and the other is a nonresident, they shall file separate income tax returns under this article, on Form No. PA-40, in which event their income tax liabilities shall be separate unless both elect to determine their joint taxable income as if they were residents. If such election is made, then the income tax liabilities of husband and wife shall be joint and several.

(c) Separate returns. If separate returns are filed the following apply:

(1) If the husband and wife file separate income tax returns under this article, and if the sum of credits or payments by either spouse (including withheld and estimated taxes) exceeds the amount of the tax for which such spouse is separately liable, such excess will be applied by the Department to the credit of the other spouse if the sum of such payments by the other spouse is less than the amount of the tax for which such other spouse is separately liable. The excess of any credits due will then be refunded to the taxpayer.

(2) If the sum of the credits or payments made by both spouses with respect to the taxes for which they are separately liable (including withheld and estimated taxes) exceeds the total taxes due, refund of the excess may be made payable to each individually, jointly, or in the event that either is deceased, to the survivor, at the discretion of the Department.

(3) Notwithstanding anything in this subsection to the contrary, either spouse may request any overpayment made by him or her be applied only against his or her separate liability.