Hi everybody, this is Jean from Total Tax and Accounting. Today, I'm going to talk to you about the concept of an injured spouse in relation to taxes. An injured spouse situation occurs when a joint tax return has been filed with your spouse, and some or all of the refund is taken to cover your spouse's outstanding tax liability. If this has happened to you, it is important to file for relief as soon as you become aware that the IRS intends to use your refund for your spouse's tax bill. To do this, you will need to fill out Form 8857, not an innocent spouse claim. Please refer to the link to our video explaining innocent spouse for more information. In general, both spouses are responsible for paying the full amount of tax, interest, and penalties on a joint return. However, you may qualify for innocent spouse relief if any of the following apply: - There is an understatement of tax due to your spouse's unreported income or fraudulent deductions or credits, and you were unaware of this. - You are divorced, legally separated, or no longer living with your spouse, and it would not be fair to hold you liable for the tax based on the facts and circumstances of your situation. Now, let's discuss the specific process you need to go through if you believe that your refund has been used to pay your spouse's tax liability. A common example of this is when the husband has a regular job with withholding taxes, while the wife has a self-employed business and owes self-employment tax. In this scenario, the tax liability arises from the wife's business activity, not the husband's. However, since the husband's withholding might lead to a refund, the IRS keeps it to cover the wife's outstanding tax....
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8379 line 6 Form: What You Should Know
The injured spouse gets 90% of the 10,000 tax refund and 15% of the remaining 5,000.
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Video instructions and help with filling out and completing Form 8379 line 6
