Having trouble getting one of my clients to understand the "injured spouse" rule. They got married in 2006 and want to file a joint return and wife wants to claim the injured spouse since husband owes back child support and the refund will be held. She says since this is a community property state she is intitled to half of his income and half the refund which is true if they were in divorce court, but she didn't work has no income except his w2. How can I get the point over to her that if she would have filed a seperate return, which wouldn't have happened, since no income & no taxes paid in and the instructions say to calculate as each spouse as a seperate return. But she says half his w2 is hers. Any suggestions as to how I can get her to see Form 8379 won't get her half of his refund.
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She is correct
>>she says half his w2 is hers<<
She is correct. That's what community property means. If they filed separate returns, each spouse would report 1/2 his W-2, or at least 1/2 his earnings after marriage. See the note about this in the Form 8379 instructions.
Does anyone understand why a woman would marry someone who refuses to support his children? -
Yeah I found that in the instructions for 8379.
"Line 6. If you live in a community property state, special
rules will apply to the calculation of your injured spouse
refund. Community property states are: Arizona, California,
Idaho, Louisiana, New Mexico, Nevada, Texas, Washington,
and Wisconsin.
Generally, income, deductions, credits, and expenses are
allocated 50/50 between spouses who live in a community
property state. Overpayments are considered joint property
and are generally applied (offset) to legally owed past-due
obligations of either spouse. However, there are exceptions.
The IRS will use each state’s rules to determine the amount,
if any, that would be refundable to the injured spouse. For
more information about community property, see Pub. 555."Comment
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