What is Injured Spouse Relief?

Are you a taxpayer who has been dealing with joint tax return issues? If so, you may have heard of something called “injured spouse relief.” But what is it, and how can it help you?

When one spouse owes back taxes, the other often feels the financial burden as well

Nobody likes dealing with back taxes, and owing the IRS money can be an enormous burden for any spouse to bear alone. Unfortunately, in many cases the spouse may not even be aware of the debt until it has reached a critical point.

When this happens, it is important to address it immediately as the spouse’s debts can have serious consequences for both parties- usually resulting in them having to pay more in taxes than necessary.

In these situations, an expert can help by providing advice tailored to your individual situation, including understanding joint responsibility laws so that you and your spouse can work together to minimize liability.

Issues with the IRS can put a strain on the relationship

Filing joint tax returns with your partner can be cause for concern, as it combines both of your financial statuses making either of you legally liable for mistakes on a joint tax return.

This can put a strain on the relationship, as well as cause financial hardship if either person is not aware of what they signed up for, financially speaking.

It’s essential to understand all the benefits and potential disadvantages associated with joint tax returns otherwise the process could become more complex and costly than necessary.

Having open conversations as a married couple about joint finances is critical and offers each partner peace of mind when their financial future is at stake.

Qualifying as an injured spouse

Knowing that you’re an injured spouse can save the day for a taxpayer caught in an unfair financial situation. While many people dread running into tax issues, the injured spouse allocation form offers a simple solution that can help lower the stress associated with owing money to the IRS.

It’s possible for an injured spouse to have their share of a refund released even if the other joint filer has unsettled debts. This relief doesn’t take long to process and allows taxpayers to get back on their financial feet quickly. Regardless of their unique personal or financial situations, it’s important to find out if they are considered an injured spouse.

Who is eligible for injured spouse relief?

If you and your spouse filed a joint return, you’re off to a good start because this is the first requirement for qualification.

In addition, if your tax refund was applied to their debt and the debt was entirely their responsibility you can seek innocent spouse relief.

If your tax refund was reduced because of this, you will be notified by the IRS which will show you the original refund amount and the amount applied to your spouse’s debt.

If you’re eligible for this relief, fill out IRS form 8379- injured spouse allocation form

You should wait no longer than 3 years from the date of a filed return or 2 from the date the tax was paid (whichever is later).

To seek relief, file form 8379- injured spouse allocation.

Once you have filled out and sent injured spouse form 8379 to the Internal Revenue Service, it can take up to 8 weeks to process.

Can the IRS deny an injured spouse claim?

Like any other claim or dispute, the IRS can deny your innocent spouse claim or decide that you are not entitled to as much as you believe.

The difference between injured and innocent spouse relief

When it comes to taxes, there are two claim relief options available for spouses filing jointly if they are facing tax debt: injured spouse claim or innocent spouse claim.

An injured spouse claim allows an individual to claim their full tax refund if their partner’s debt is reducing the amount of money they’re entitled to due to being over-withheld on taxes.

On the other hand, an innocent spouse claim applies when one partner has been disadvantaged due to lacking knowledge about actions taken on a joint return by the other spouse.

The claim will exempt them from any additional tax liabilities or penalties associated with erroneous information reported. It is helpful to consult with a tax professional when determining which claim option may be most appropriate in your situation.

Consult with a tax professional for the best results

It is important to seek professional help if you think you may be eligible for an injured spouse claim. A tax resolution specialist can provide you with the appropriate guidance and support needed to understand your options.

If you’re in a situation where your spouse owes back taxes, you may be eligible for an injured spouse claim. This can provide much-needed financial relief and help to preserve your relationship.