If you're filing Form 8379, Injured Spouse Allocation, the IRS uses the information on the form to determine how much of a joint tax refund belongs to each spouse. This helps the IRS release the injured spouse's share of the refund when part or all of the joint refund is being applied to the other spouse's past-due debts.
Allocating Federal Income Tax Withholding
When completing Form 8379, assign any federal income tax withholding to the spouse who earned the income and had the tax withheld.
For most taxpayers:
- Federal withholding reported on a spouse's Form W-2 should be allocated to that spouse.
- Federal withholding reported on a spouse's other income documents, such as certain Forms 1099, should also be assigned to the spouse who received that income.
- The allocation should match the income and withholding reported under each spouse's name.
Using Our Software
If you entered your W-2 information in the program, the withholding amounts are pulled in automatically. In most cases, the software will assign the federal tax withholding to the correct spouse based on the W-2 entries already included in the return.
Why This Matters
Correctly allocating withholding helps the IRS calculate each spouse's share of the refund accurately. If the withholding is assigned incorrectly, it could affect the amount of refund released to the injured spouse.
If you're unsure how to allocate withholding from forms other than a W-2, review which spouse earned the income associated with that withholding and assign it accordingly.