Our Taxes were offset do to my husbands student loans, we plan to challenge the offset since loan being in rehabilitation, can I still file a injured spouse 8379?

[lumar116]

We have don't yet have the paperwork to challenge the offset but plan to when we get it in the mail. Still wanted to file an injured spouse form so that at least we get some of the refund back. Does anyone know if I can do both of these, don't want to screw up challenging the offset. Thanks

[DianeW · Accepted solution]

Yes, you can do both.  The IRS will release at least part of the refund and this should not interfere with the challenge. The refund is released due to the injured spouse (who does not have the debt) being penalized for a debt they don't owe. 

You can choose to add this to your return in TurboTax so that it's included with your return.  This is the fastest way for IRS processing and refund release.

Select the right person as the injured spouse (the one without the debt) because this can hold of the return.  The IRS will not make the change for you

Reminders:  

1. If the injured spouse is the only one with income all of the refund will be released after IRS review of the Form 8379.  
2. 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.  
3. 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.  
4. Per the IRS, process time is 11 weeks for an e-filed return and 14 weeks for a mailed return. (estimated)
   
5. Review the screenshot attached for the initial important answers.

To prepare Form 8379 Injured Spouse Allocation using TurboTax Online:

1. Click on My Account

2. Click on Tools

3. Click on Topic Search

4. Search for 8379 and click Go

5. Follow the prompts (see the attached screenshots)

Note : If you don't have a My Account, try maximizing your window and/or zooming out your browser.  If you are on a mobile device, you will not have access to My Account or Tools.  The instructions below for TurboTax Desktop should offer you close guidance.  If you need more assistance, please comment below.

To prepare Form 8379 Injured Spouse Allocation using TurboTax Desktop (CD/Download Product):

1.     Click on Federal Taxes (Personal, if using Home & Business)

2.     Click on Other Tax Situations

3.     Click on Miscellaneous Tax Forms

4.     Click on Report an injured or innocent spouse claim

5.     Follow the prompts and attached screenshots