Key Takeaways
- Used to reclaim YOUR share of a joint refund seized for SPOUSE'S separate debt.
- Separate debts: Child support arrears, defaulted student loans, past-due state tax.
- Not about tax liability; it's about refund allocation.
- Filed on Form 8379 (can be filed with original return or after offset).
- Deadline: 3 years from due date or 2 years from payment.
- No "innocence" required—this is purely mathematical allocation.
Injured Spouse Allocation: Getting Your Refund Back
Why This Matters for the Exam
Injured Spouse questions are common because students frequently confuse this with Innocent Spouse Relief. The exam loves to test the distinction. Remember: Injured Spouse is about reclaiming your portion of a refund that was seized for your spouse's separate debt—not about escaping tax liability.
Expect at least 1-3 questions testing when Form 8379 applies and how it differs from Form 8857.
When Does the Refund Get Seized?
When a joint return shows a refund, but one spouse has certain past-due debts, the IRS will offset (seize) all or part of the refund to pay that debt.
Debts That Trigger Offset:
- Past-due federal tax debts.
- Past-due state income tax debts.
- Past-due child support or spousal support.
- Defaulted federal student loans.
- Certain other federal agency debts.
The Problem: Both spouses contributed to the joint refund (through withholding, estimated payments, and credits). But only one spouse owes the debt. The "injured" spouse's share of the refund should not be used to pay the other spouse's separate obligation.
How Form 8379 Works
Form 8379 (Injured Spouse Allocation) asks the IRS to calculate each spouse's share of the joint refund and return the injured spouse's portion.
Allocation Factors:
- Each spouse's share of income reported on the return.
- Each spouse's share of withholding and estimated payments.
- Each spouse's share of refundable credits (EIC, CTC, etc.).
Example:
- Joint refund: $5,000
- Husband's share (based on income/withholding): $3,000
- Wife's share: $2,000
- Husband has past-due child support: $10,000
Result: The IRS offsets $3,000 (husband's share) for child support. The wife files Form 8379 and receives her $2,000 back.
Filing Form 8379
When to File:
- With the Original Return: If you know your spouse has a past-due debt, attach Form 8379 to your joint return (1040). This prevents the offset from happening in the first place.
- After the Offset: If your refund was already seized, file Form 8379 to request your share back. Processing takes 8-14 weeks.
Who Signs: Only the injured spouse needs to sign Form 8379.
Processing Time:
- If filed with original return: Normal refund timeline (but may add 2-4 weeks).
- If filed after offset: 8-14 weeks for IRS to process and issue refund.
Comparison: Form 8857 vs. Form 8379
| Factor | Form 8857 (Innocent Spouse) | Form 8379 (Injured Spouse) |
|---|---|---|
| Purpose | Relief from tax liability | Recovery of refund portion |
| Issue | You shouldn't OWE this tax | You want your refund BACK |
| Spouse's Problem | Underreported income or overstated deductions | Pre-existing separate debt |
| What You're Escaping | Tax, penalties, interest on joint return | Offset of your refund share |
| Knowledge Test | Yes—must prove you didn't know | No—pure mathematical allocation |
| Can File with 1040? | No—filed separately after liability | Yes—can attach to original return |
Community Property States
In community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin), the allocation is more complex. Community income is generally split 50/50, even if only one spouse earned it.
Impact: In community property states, the "injured" spouse may receive less of the refund because half of the other spouse's income is considered community income.
Form 8379 Asks: Whether you live in a community property state and how you allocate community income.
State Debts Subject to Offset
Not all debts trigger a refund offset. Here's what does:
| Debt Type | Offset? | Notes |
|---|---|---|
| Past-due federal income tax | ✅ Yes | IRS collects first |
| Past-due state income tax | ✅ Yes | State reciprocity agreements |
| Past-due child support | ✅ Yes | Federal offset program |
| Defaulted federal student loans | ✅ Yes | Treasury Offset Program |
| Credit card debt | ❌ No | Not a government obligation |
| Medical debt | ❌ No | Not a government obligation |
| Private student loans | ❌ No | Not a federal debt |
Real-World Scenario
Scenario: Susan and Tom file jointly for 2024 and expect a $6,000 refund. Tom has $15,000 in past-due child support from a previous marriage. Susan earned 60% of the household income and contributed 60% of the withholding.
- What happens? The IRS offsets the entire $6,000 refund for Tom's child support.
- What should Susan do? File Form 8379 to claim her 60% share ($3,600).
- Better approach: Susan should attach Form 8379 to the original 1040 to prevent the offset of her share.
On the Exam
Expect 1-3 questions on Injured Spouse Allocation, typically:
- Form Questions: "Which form is used to recover a refund seized for a spouse's past-due child support?"
- Timing Questions: "Can Form 8379 be filed with the original joint return?"
- Distinction Questions: "What is the difference between Innocent Spouse and Injured Spouse?"
The key is to remember: Form 8379 = Refund recovery. Form 8857 = Liability relief. Injured ≠ Innocent.
A taxpayer's joint refund was seized to pay her husband's past-due child support. Which form should she file?
Can Form 8379 be filed with the original electronic tax return?
Which of the following debts does NOT trigger a refund offset?