Injured Spouse Relief Flashcards
What is Injured Spouse Relief, and how does it differ from Innocent Spouse Relief?
Injured Spouse Relief allows a spouse to claim their portion of a refund when it has been offset against the other spouse’s past-due obligations (e.g., child support, student loans). It differs from Innocent Spouse Relief, which deals with joint liability for tax understatement.
What form is used to file for Injured Spouse Relief?
Form 8379, Injured Spouse Allocation, is used to file for this relief.
When should Form 8379 be filed for Injured Spouse Relief?
Form 8379 should be filed with the original tax return or amended return (Form 1040X) or separately if the injured spouse becomes aware of an offset after receiving a notice from the IRS.
What are the eligibility criteria for claiming Injured Spouse Relief?
The spouse must not be legally obligated to pay the past-due amount, must have reported income (e.g., wages, self-employment income), and must have made and reported tax payments or claimed a refundable tax credit.
How is the portion of the refund allocated to the injured spouse calculated?
The portion of the refund allocated to the injured spouse is calculated based on their contribution to the total refund. This includes considering their income, withholding, and credits.
What are the typical obligations that might cause a refund to be offset, leading to the need for Injured Spouse Relief?
Typical obligations include past-due federal taxes, state taxes, child or spousal support, or federal non-tax debt such as student loans.
How long does it typically take for the IRS to process Form 8379, and what can be done if there are delays?
Processing may take up to 14 weeks if filed with a joint return or up to 8 weeks if filed separately after a joint return. The IRS can be contacted for status updates after this time has passed.
Can Injured Spouse Relief be claimed in community property states, and how might the rules differ?
Yes, Injured Spouse Relief can be claimed in community property states, but the rules might differ as community property laws may affect the allocation of income and debts.
