Did the IRS take money out of your federal income tax return check to pay back pasts debts of your spouse? Do you want some, if not all, of that money back? If so, listen up, because we have got a solution for how to get your personal federal tax return income back.
This solution is an injured spouse claim. An injured spouse claim is a claim you make with the IRS to get your part of a tax refund back from a jointly filed federal tax return.
To help you better understand how different tax returns and claims work, we are going to tell you detailed information on injured spouse claims. We are also going to talk about the difference between an injured spouse claim and an innocent spouse claim.
Get ready to receive every ounce of money back from your tax returns!
What Is an Injured Spouse Claim?
Like previously stated, one files an injured spouse claim with the IRS to prove that his or her spouse established debts independently. This, in turn, shows that these debts should be paid off independently rather than with his or her part of the joint federal income tax returns. Injured spouse claims cannot be filed electronically.
Some spousal debts that would qualify you for an injured spouse claim include debts accrued solely by your spouse, your spouse’s federal student loans, and/or your spouse’s due child support. Note that you can still file an injured spouse claim when you’ve previously filed for joint federal income tax returns. You also qualify to file an injured spouse claim if you already reported payments on you and your spouse’s joint income tax return.
On the other hand, you cannot file an injured spouse claim when the tax debt that is being paid off is also jointly owned. You also do not qualify for an injured spouse claim if you have zero dollars of reported income that year. Thus, if you are not bringing home any money, it is still the responsibility of your joint federal income tax returns to pay off your spouse’s debts.
If your spouse owes the government money, the U.S. Treasury Department can take your joint refund money through the Treasury Offset Program to pay off outstanding taxes, payments, and debts. Through this injured spouse relief strategy, you can still keep part of the refund money to yourself.
What Is Considered Your Share of a Federal Tax Income Return?
When dividing up a federal tax income return between you and your spouse, the payments that you individually made plus the pro-rated portion of any refundable credit is yours. Any tax refunds due to taxes paid by your individual self-employed income also belong to you.
You will also receive your proper share of any child tax credits you have. You and your spouse will individually receive earned tax return credit based on how much money you each bring to the table.
What Form Do You File an Injured Spouse Claim With?
The IRS form used to file an injured spouse claim is IRS Form 8379. One way to ensure that you receive any necessary tax return income is to attach an IRS Form 8379 to you and your spouse’s joint tax returns when filing for returns.
If you already filed your joint tax returns, mail the IRS Form 8379 to your designated IRS center. Remember to submit you and your spouse’s W-2 and 1099 forms when submitting IRS Form 8379.
To make an injured spouse claim, you need to file an IRS Form 8379 every tax year that your refund was affected. The deadline to file an injured spouse claim is either 3 years after the original return date, or two years from the day that you paid the offset tax. The IRS will inform you if they are taking some of you and your spouse’s refund money to offset some debt.
When Do I File An Innocent Spouse Claim?
People file innocent spouse claims after already signing a joint return. You qualify for an innocent spouse claim when you do not know your spouse’s financial situation due to deceit and lies. Examples of deceit and lies include your spouse hiding money, being falsely qualified for a new tax credit or deduction, or any other form of misinformation.
Basically, in innocent spouse claims, one spouse is left in the dark or lied to about the couple’s financial situation. In injured spouse claims, although not usually left in the dark, one spouse’s portion of tax return money is used to pay off debts that the other spouse accrued prior to being together or while they were separated.
What Form Do You File an Innocent Spouse Claim With?
To file an innocent spouse claim, you file the IRS form 8857. Make note that the innocent spouse claim form cannot be submitted electronically.
To successfully file for innocent spouse relief, you have to prove that you did not know that the tax or debt existed. You can also successfully file for innocent spouse relief if you can prove that you did not understand what was being filed for in your taxes.
What Spouse Claim Do You Plan on Filing?
If you have no problem using your tax refund money to pay off your spouse’s debts, then you do not have to file for an innocent spouse claim or an injured spouse claim. If you do not want to pay your spouse’s previous personal debt, student loan debt, or child support debt that he or she accrued while you were separated, then file an injured spouse claim. If you were blindsided by your spouse’s hidden debts, file for an innocent spouse claim.
Regardless of what spouse claim you choose to file for, just make sure that you are keeping up with your taxes and debts. Because, if you do not, the IRS will.
To learn about how a certified public accountant (C.P.A.) can help you with your taxes, contact us here.
