IRS Injured Spouse

Filing jointly with your spouse can sometimes lead to unexpected tax issues. What happens if your tax refund is seized to cover your spouse’s past-due federal tax debt? You might be eligible for help thanks to the IRS injured spouse rule.

This guide explains the IRS injured spouse rule. You’ll learn if you qualify and how to claim your share of the refund.

Table of Contents:

• Understanding the IRS Injured Spouse Rule
• Who Qualifies as an Injured Spouse?
• IRS Injured Spouse Rule: How to Claim Your Refund
  • 1. File Form 8379
  • 2. File Timing
  • 3. Supporting Documentation
  • 4. Where to File
• What Happens After You File for an Injured Spouse Claim?
• Understanding Offsets and Notices
• Key Differences: Injured Spouse vs. Innocent Spouse
• Navigating Tax Challenges

Understanding the IRS Injured Spouse Rule

The injured spouse rule offers relief when your portion of a joint tax refund is used to offset your spouse’s debt. This debt can include unpaid federal taxes, state income tax obligations, and past-due child or spousal support.

It can also include other federal non-tax debts like student loans. The IRS injured spouse rule helps you reclaim your share of the refund if you’re not responsible for the debt.

Married couples filing separately in community property states may qualify. Community property laws dictate how a married couple’s assets and liabilities are handled.

Who Qualifies as an Injured Spouse?

You likely qualify as an injured spouse if you filed a joint tax return, and your refund was reduced due to your spouse’s debt.

You should not be legally obligated for the debt. You also need to have reported income on Form 1040 and either made estimated tax payments or claimed refundable tax credits, such as the Earned Income Credit.

IRS Injured Spouse Rule: How to Claim Your Refund

If you meet the requirements, these steps will help you get your refund back. Apply no later than three years after the return was filed or two years after the tax was paid, whichever is later. These timings apply based on Internal Revenue Code Section 6511.

1. File Form 8379

Complete Form 8379, Injured Spouse Allocation. Verify all taxpayer identification numbers match your joint income tax return.

2. File Timing

You can file Form 8379 with your original tax return (by mail or electronically) or with an amended return. You can also file it separately by mail after notification of a reduced refund.

3. Supporting Documentation

Include important tax forms such as W-2s for wages, salaries, and tips and 1099s for other income like unemployment compensation. This information verifies your separate income.

4. Where to File

Send Form 8379 to the same IRS Service Center where you filed your initial return. Consider using electronic federal tax payment systems when filing online.

What Happens After You File for an Injured Spouse Claim?

Processing can take about 8 weeks or much longer when bundled with a tax return. The process checks whether you should receive a part of the refund applied towards debt.

It’s inconvenient to wait for a return that’s been unjustly diminished. The injured spouse allocation provides recourse.

Understanding Offsets and Notices

The IRS uses offsets to apply your refund towards debt. You should receive a Notice of Offset from either the IRS or the US Treasury’s Bureau of the Fiscal Service (BFS).

This notice shows details like the initial refund amount, the amount offset, and the recipient agency. It also includes contact information. The injured spouse claim will help sort out your tax liabilities.

If you’re disputing a debt or its amount, contact the agency using the provided details. Call 800-304-3107 or TTY/TDD 800-877-8339 (weekdays, 7:30 a.m. to 5 p.m. Central time) for questions about offsets. Use this information to learn whether other federal or non-federal debts are also impacted.

Key Differences: Injured Spouse vs. Innocent Spouse

People often confuse the injured spouse rule with innocent spouse relief. An injured spouse deals with joint refund offsets for a spouse’s past debt that does not apply to you.

Innocent spouse relief applies when one spouse isn’t responsible for taxes owed due to the other spouse’s errors or omissions on the return. When only your spouse is responsible, apply for innocent spouse relief using Form 8857, Request for Innocent Spouse Relief. Contact a Taxpayer Advocate for more help.

The Taxpayer Advocate Service helps individuals facing tax problems. These can often be difficult situations when owing taxes becomes a new challenge.

Navigating Tax Challenges

Tax challenges can be stressful. The Taxpayer Advocate Service and Low Income Taxpayer Clinics (LITCs) offer assistance to those facing financial hardship with the IRS.

The Taxpayer Bill of Rights provides more information on your taxpayer rights. Form 8379 (Injured Spouse Allocation) helps address refund offsets. Form 8857 (Innocent Spouse Relief) addresses tax liability due to spouse errors.

The child tax credit can cause confusion, and many tax pros are familiar with handling the form. The standard deduction and bank account levies can affect the process, so contact a professional if needed.

The IRS injured spouse rule can feel confusing. With the right information and resources, you can determine how the IRS injured spouse rule applies to your situation.

This overview of claiming your rightful refund portion empowers taxpayers. It’s an essential part of managing federal tax payment and individual income tax return matters.