Generally, they would levy the refund if you file a joint return. However, there is an available solution for this problem. The solution is called an injured spouse claim. If you file a joint income tax return and include Form 8379 Injured Spouse Claim, the IRS will allocate the portion of the joint return’s refund that would be yours if you were filing separately. There is also the option to file using the single filing status.
To qualify for an injured spouse claim, the following must apply:
Your spouse must be liable for a debt that can be levied from your Federal tax refund. Those debts include tax debts, student loan debts, unpaid child support, state tax debt, or other non-tax federal debts, and;
You must have made and reported tax payments, such as federal income tax withheld from wages or estimated tax payments, or;
You claimed (or will claim) a refundable tax credit, such as the earned income credit or additional child tax credit on the joint return, and;
You are not legally obligated to pay the past-due amount.
To claim this in TurboTax, follow this path in the program:
Click the Federal Taxes TAB or Category in TurboTax (called Personal in Home and Business).
Click on the Other Tax Situations SubTAB or subcategory.
Find the section labeled Other tax Forms
Click start or update on the line for Miscellaneous tax forms
Click start next to the item for Report an injured or innocent spouse claim.
Click yes, then click continue past the innocent spouse section.
There are special rules for community property states. However, TurboTax will guide you through those as you make the entries in the injured spouse section.
