You have two main options when faced with a spouse having
collectible debts resulting in the offset of any refund. File a married
filing jointly (MFJ) return with Form 8379, or file Married Filing
Separately (MFS).
Married filing Jointly (MFJ):
It is often better from a tax standpoint to file as Married
Filing Jointly (MFJ) and include an Injured Spouse Form 8379 with your tax
return to prevent the IRS from seizing your tax refund.
Form 8379 lets you (the "injured spouse") get back
your portion of a jointly-filed refund if it's seized or offset to pay your
spouse's debt, such as from a defaulted or past due student loan. You may be able to recover your
portion of any refund offset by your spouse's debt for the current tax year and
certain prior tax years.
File Form 8379 when you become aware that all or part of your
share of an overpayment was, or is expected to be, applied (offset) against
your spouse's legally enforceable past-due obligations.
You must file Form 8379 for each year you meet this condition
and want your portion of any offset refunded. You must file Form 8379 within 3
years from the due date of the original return (including extensions) or within
2 years from the date that you paid the tax that was later offset, whichever is
later.
You must file jointly to use this form. Also, filing an 8379
will delay your federal refund by up to 14 weeks.
If you have not already filed:
To add Form 8379 to your return:
1.
Once in your return, type "injured spouse" in the
search box on the blue dashboard.
2.
Click the blue "Jump to" link in the search results.
3.
Answer Yes to Do you want to claim
innocent or injured spouse relief? and carefully follow the onscreen
instructions.
Note:
Pay close attention to the screens, only answer the
questions for injured spouse.
If you
have
already filed:
Form 8379 can be filed on its own without requiring an amended
return. You will need to fill out the form and mail to the address
indicated on the form instructions.
You can create the form in TurboTax:
If you are using TurboTax Online, open your return and sign in.
On the Welcome home screen, select Taxes.
On the Tax Timeline screen, select Amend (change)
return.
If you are using the CD/Download product, open your
return.
When your return is open, In the search box, search for injured
spouse and then click the "Jump to" link in the search
results. Answer Yes to Do you want to claim innocent
or injured spouse relief? and carefully follow the onscreen
instructions for Injured Spouse.
For instructions on how and where to file and to get a copy of
Form 8379: Form
8379, Injured Spouse Allocation
Note: On the IRS Form 8379 instructions, under "Where to File"
there is a blue link with mailing addresses by state.
TurboTax FAQ: How
do I file Form 8379, Injured Spouse Allocation?
Married Filing Separately (MFS).
If you have already filed your return Married Filing Jointly,
you cannot amend to Married Filing Separately,
please see above directions.
The IRS
will not take your refund for the debts of your spouse if you file as
Married Filing Separately (MFS).
States may have differing regulations regarding this issue.
If you choose to file MFS, and live in a community property
state, please see this helpful TurboTax FAQ: https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states
Other states, for example KY, do not recognize federal Form 8379
and require you to form as MFS.
