"Community property laws/allocations *can* be interpreted to do exactly that."

That's likely not the issue, though. The issue I described is, did the Programmers provide for it? If their update to the program for the UI depends on the 1099-G info to match to the provision of "per payee" then perhaps there is no T/S/J provision in the program and no way to split it without some sort of manual override, 2x 1099-G entries (which isn't reality), etc. To the program, you are trying to do an arbitrary task, not one relative to the logic for the limit per payee.