Income and losses must be allocated to whichever person owns the item (or is the source of the income). When an item is held jointly, the income or loss needs to be allocated 50% to each taxpayer.
To calculate your respective exclusion amounts, you'll use the computation shown on the Schedule 1 (Page 2), Retirement Income Exclusion, in the Form 500 package. You'll need to include actual amounts for each spouse for each income category, and allocations as appropriate.
See RETIREMENT INCOME EXCLUSION and Schedule 1 Page 2) in the 2022 IT-511 Individual Income Tax Booklet for more information.
