The refund will take longer the but the best way to file is jointly to obtain the maximum refund. File it with your tax return electronically for the most efficient and expedient method. Because you live together you only other option would be married filing separately, which would cause you to lose some benefits.
In community property states, overpayments are considered joint property and are generally applied (offset) to legally owed past-due obligations of either spouse. However, there are exceptions. The IRS will use each state's rules to determine the amount, if any, that would be refundable to the injured spouse.
See the information below to help you complete the injured spouse.
While you are signed into your TurboTax account you can find the injured spouse using the steps here.
- Use the search box in the upper right > Search for injured spouse > Jump to injured spouse
- (continue past the innocent spouse questions)
- The information below will assist in making sure you have it all ready to go with the return.
Reminders and Tips:
- Select the correct person as the injured spouse (the one without any debt).
- If the injured spouse is the only one with income all of the refund will be released after IRS review of the Form 8379.
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If you are not in a community property state, and both of you have income, you can divide exemptions up any way you see fit. It is possible the IRS may make some adjustments based on the income levels for each of you. Let them do that when they receive it.
- If you do live in a community property state, community income would be split equally between the two spouses. With respect to deductions, the deductions would be split depending on whether the expenses related to community income or separate income.
- There are nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.
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Alaska is an opt-in community property state that gives both parties the option to make their property community property.
- The standard deduction must be split between you so you can't change that part. For itemized deductions you can put those under the injured spouse.
- Please note, this will cause your return to take longer to process. Per the IRS, 11 weeks for an e-filed return and 14 weeks for a mailed return. (estimated)
- Review the screenshot attached for the initial important answers.
- Click the link (only if you are mailing this form separately from your tax return) here to find the mailing address for your area. Where to File Paper Returns With or Without a Payment
