How to Recover Your Refund with Injured Spouse Relief

Losing part or all of your tax refund because of your spouse’s debts can be frustrating, especially if you have no legal obligation to pay those debts. Fortunately, if this happens, you may qualify for Injured Spouse Relief. This IRS provision allows you to reclaim your portion of a withheld refund. This guide breaks down everything you need to know about Injured Spouse Relief—what it is, how to qualify, and the steps you need to take to reclaim your money.

What Is Injured Spouse Relief?

Injured Spouse Relief is an IRS provision that protects your portion of a joint tax refund when it covers debts solely owed by your spouse. When married couples file joint tax returns, the IRS views them as a single financial entity. This means the IRS can use the entire refund to settle debts legally owed by one spouse, even if the other spouse has no responsibility for that debt.

For instance, if one spouse owes unpaid child support or defaults on a federal student loan, the IRS may seize the joint refund to cover the debt. Although the debt is solely the responsibility of one spouse, the other spouse, who does not owe the money, suffers financial harm as a result. This financial harm, or “injury,” gives the relief its name. By filing for injured spouse relief, you can ask the IRS to release your portion of the withheld refund, ensuring you receive what is rightfully yours.

This provision typically applies to debts such as:

• Past-due child or spousal support
• Federal or state income tax liabilities
• Delinquent student loans
• Certain federal nontax debts, like state unemployment compensation debts

Who Qualifies for Injured Spouse Relief?

To qualify, you must meet certain conditions. First, you must have filed a joint tax return with your spouse. Injured Spouse Relief does not apply to individual returns. Additionally, you must have earned income, paid taxes, or claimed certain refundable tax credits, such as the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit. Most importantly, the debt that caused the refund offset must belong solely to your spouse. If you were legally responsible for the debt, you would not qualify.

Special Considerations for Community Property States

For taxpayers living in community property states like California, Texas, or Arizona, the rules for claiming Injured Spouse Relief are more complex. Community property laws treat income and assets acquired during marriage as jointly owned. This can complicate how the IRS calculates your portion of the refund. Instead of awarding you the full amount you earned, the IRS may divide the refund proportionally based on the combined income of both spouses.

For instance, if you earned 70% of the household income, the IRS may allocate 70% of the refund to you and use the remaining 30% to satisfy your spouse’s debt. Consulting IRS Publication 555 or working with a tax professional can clarify how these rules apply in your situation.

How Do You Apply for Injured Spouse Relief?

If you qualify, the process for filing is relatively straightforward. You must complete Form 8379, Injured Spouse Allocation, and provide accurate information about your income, tax payments, and credits. You can file this form alongside your joint return if you anticipate a refund offset. Filing the form with your tax return helps expedite processing and ensures the IRS addresses your situation from the start.

If you’ve already filed your joint return and received notice of an offset, you can still submit Form 8379 separately. When doing so, ensure all information matches what you provided on your original tax return. Including supporting documentation, such as W-2s or offset notices, can also help avoid delays.

The IRS typically takes about 8 to 14 weeks to process Form 8379. If the form is filed separately, it may take slightly longer. To avoid unnecessary setbacks, double-check your entries for accuracy, including your Social Security numbers and signatures.

Tips for Filing Form 8379

Here are some practical tips to help you file Form 8379 for Injured Spouse Relief more easily and efficiently:

1. File early if possible. Submit Form 8379 with your tax return if you anticipate an offset. This helps expedite processing and avoids unnecessary delays.
2. Provide accurate Social Security numbers. Double-check that both you and your spouse’s Social Security numbers are listed correctly and in the same order as they appear on your joint tax return.
3. Sign the form. The injured spouse must sign Form 8379 for it to be processed. You must sign to avoid the IRS returning your form for correction.
4. Include any required documentation. Attach relevant documents, such as W-2 forms or offset notices, to support your claim. If additional documentation is needed, be sure to mail the form instead of filing electronically.
5. Send it to the correct IRS address. If filing Form 8379 separately, mail it to the IRS service center where you originally sent your tax return. Double-check the address to avoid delays.

How Does Injured Spouse Relief Differ from Innocent Spouse Relief?

It’s easy to confuse Injured Spouse Relief with Innocent Spouse Relief, but these provisions address different scenarios. Injured Spouse Relief applies when your refund is offset due to debts owed solely by your spouse. 

Innocent Spouse Relief, on the other hand, provides relief from joint tax liability when your spouse improperly reported income or claimed false deductions on a joint return. If you believe you need Innocent Spouse Relief, you must file Form 8857 instead of Form 8379.

Why Seek Professional Help

Filing for injured spouse relief can seem straightforward, but certain situations may require professional assistance. For example, if you’re unsure about your eligibility, live in a community property state, or have multiple refund offsets, consulting a tax professional can save you time and stress. They’ll help you understand IRS rules, help you complete Form 8379 correctly, and work to secure the refund that’s rightfully yours.

At Tax Samaritan, we specialize in helping taxpayers resolve IRS matters efficiently and effectively. Our team of experienced professionals is here to guide you through every step of the process while advocating for your rights and protecting your interests.