Injured spouse status is a designation provided by the Internal Revenue Service (IRS) to protect a taxpayer’s share of a joint tax refund from being used to satisfy the past-due debts of the other spouse. This status applies when a joint tax return has been filed by a married couple, and the refund is seized by the IRS to pay for the past-due debts of the other spouse, such as overdue child support, student loans, or taxes.
How does Injured Spouse Status work?
When a married couple files a joint tax return, both parties are liable for any taxes owed or past-due debts. However, if one spouse has unpaid debts, the IRS may seize the entire tax refund to pay for those debts, even if the other spouse is not responsible for them. Injured spouse status allows the innocent spouse to claim their portion of the refund by filing Form 8379, Injured Spouse Allocation.
The form is used to calculate the injured spouse’s share of the refund, which is then distributed to them accordingly. The injured spouse will receive their share of the refund in a separate check or direct deposit, while the remaining amount will be used to satisfy the other spouse’s past-due debts.
Who is eligible for Injured Spouse Status?
An injured spouse is a taxpayer who has a share of the joint tax refund, but whose portion of the refund is at risk of being offset to pay for the other spouse’s past-due debts. To qualify for the injured spouse status, the taxpayer must meet certain requirements, including:
Filing a joint tax return with their spouse
Reporting income on the joint tax return
Claiming tax credits, such as the Earned Income Tax Credit (EITC), on the joint tax return
Not owing any past-due debts themselves
How to file for Injured Spouse Status?
To claim injured spouse status, taxpayers must file Form 8379. The form must be included with their joint tax return or separately after they have filed their return. The form can be filed electronically or by mail. It must include all required information, including the Social Security numbers of both spouses.
It’s important to note that filing Form 8379 may delay the processing of the tax return and refund. So taxpayers should be prepared for a longer wait time. Additionally, taxpayers should file Form 8379 for every year they are eligible for.
Conclusion
Injured spouse status is a valuable option for married couples who file joint tax returns. This will enable them to protect their share of the tax refund. By filing Form 8379, taxpayers can ensure that their portion of the refund is not used to pay for their spouse’s past-due debts. Eligible taxpayers should take advantage of this option and file Form 8379. This will enable them to receive their portion of the refund in a timely manner.