Can the state of Maine intercept my federally filed joint tax return for unemployment compensation debts if my spouse and I claimed injured spouse for federal?

[m9spencer]

My spouse and I filed our joint taxes this year for federal and state. We applied for injured spouse with the federal and the state for my past due unemployment compensation debt. The state of Maine essentially does not accept this form for state. The only thing they accept form 8379 for, is unpaid past taxes. So, will the injured spouse form help my wife out on the federal side? As stated, the state of Maine only accepts form 8379 for basically unpaid past taxes. But is that just for state? Will they try and keep our whole return now? I know that the 8379 can be used, but if the state of Maine doesn't accept them for unemployment compensation debts, (whom I owe) will they take our whole federal return as they did with the state? 

[DanielV01 · Accepted solution]

It depends.  The state has no say in the IRS' determination on Form 8379.  What Maine does is make a claim that either you or your spouse have a debt for which the IRS may offset your refund to apply to the debt.  At the state level, these are usually on back (delinquent) state taxes or delinquent child support.  But they don't have a say on how much is sent.  The IRS, and only the IRS, determines how much of a refund is offset and applied to a debt.

The debt you described may not qualify for being offset.  But you can verify this yourself by following the instruction found at this website:  Topic No. 203 Refund Offsets for Unpaid Child Support ... - IRS.gov

What Maine is saying about Form 8379 is that they do not have an Injured Spouse provision at the State Tax Level.  That has no effect on what the IRS determines for your Federal Refund.