Debt Relief for Spouses Filing Joint Tax Returns

 

If you’re a married person or someone who needs to file your taxes jointly, but you have a partner with delinquent debt that you’re not liable for, you may have options. If your spouse has past-due federal tax, state income tax, child or spousal support, federal nontax debt or student loan, injured spouse relief allows for the “innocent” party to avoid penalty and keep their refund.

 

Here are seven facts the IRS wants you to know about claiming injured spouse relief:

1. To be considered an injured spouse, you must have made and reported tax payments, such as federal income tax withheld from wages or estimated tax payments, or claimed a refundable tax credit, such as the earned income credit or additional child tax credit on the joint return, and not be legally obligated to pay the past-due amount.

    2. If you live in a community property state, special rules apply. For more information about the factors used to determine whether you are subject to community property laws, see IRS Publication 555, Community Property.

     3. If you filed a joint return and you’re not responsible for the debt, but you are entitled to a portion of the refund you may request your portion of the refund by filing Form 8379, Injured Spouse Allocation.

     4. You may file form 8379 along with your original tax return or your may file it by itself after you are notified of an offset.

     5. You can file the Form 8379 electronically. If you file a paper tax return you can include Form 8379 with your return, write “INJURED SPOUSE” at the top left corner of the Form 1040, 1040A, or 1040EZ. IRS will process your allocation request before an offset occurs.

     6. If you are filing Form 8379 by itself, it must show both spouses’ social security numbers in the same order as they appeared on your income tax return. You, the “injured” spouse, must sign the form.

     7. Do not use Form 8379 if you are claiming innocent spouse relief. Instead, file Form 8857, Request for Innocent Spouse Relief.  This relief from a joint liability applies only in certain limited circumstances. IRS Publication 971, Innocent Spouse Relief, explains who may qualify, and how to request this relief.

 

The document will have to be reviewed separately to ensure that you will not be at risk of losing your refund in some manner. We can assist you in every step of this process, and ensure
 proper processing. 

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