Taxes can be a real headache. And if you file Married Filing Joint (MFJ) you must know about Innocent spouse vs Injured spouse relief. After all, these can be your tax superheroes depending on your tax situation. In fact, when the taxman comes knocking, these might be your only option when nothing else is hearts and roses anymore. Here, we will discuss both innocent and injured tax relief for you. So, stay reading till the end if you file a joint tax return with your spouse. Undoubtedly, both of these can save you from unnecessary taxes – dependently.
Innocent spouse vs injured spouse relief
To perfectly delve into Innocent spouse vs Injured spouse relief together, let’s clear them out for you separately. So, Innocent spouse relief is for the spouse who is unaware of the tax trouble of their partner. Because this person – innocent spouse – shouldn’t be responsible for situation of the other, the only way out to safety is innocent spouse relief. For instance, say you and your better half filed your taxes with a balance. You were unaware of the balance due or under the impression that your partner had taken care of the balance. It would not be right to hold you responsible for your partner’s mistake. Thus, to save yourself from such a situation, you need innocent spouse relief. Applying for this can prevent you from paying the original tax, interest and penalties – if approved.
Now that you know the former one in Innocent spouse vs injured spouse relief, let’s talk about the other one: Injured spouse relief. So, Injured spouse relief is for the spouse who unwillingly pays for the debt of their partner with their tax refund. Because this person – injured spouse – shouldn’t have to sacrifice their one tax refund for their partner’s debt, the only way out to tax safety is injured spouse relief. For instance, say you and your partner filed your taxes together. Clearly, the IRS will take your tax refund to cover the debt of your partner – leaving you injured. Thus, you can think of injured spouse relief as a shield that protects your share of the tax refund from being snatched away while still harvesting the benefits of filing a joint tax return. Amazing, right? But it only works if you are eligible for it. Therefore, let’s talk about eligibility.
Eligibility Criteria for Innocent spouse vs injured spouse relief
The eligibility criteria of Innocent spouse vs injured spouse relief is not that much complicated or complex. There are some factors you need to take care of. For example, the application time needs to be quick. Moreover, there are some clauses and factors you need to take care of. All in all, the eligibility criteria for Innocent spouse vs injured spouse relief comes down to the following:
| No Clue Clause | ← Innocent Spouse ReliefvsInjured Spouse Relief → | Not Your Debt |
| You must be innocent in the matter. Thus, you are eligible if you had no clue about the tax slip up. | If the debt was your partner’s and you did not owe anything to the IRS, then you are eligible to apply for it. | |
| Not Fair Factor | Earn your own keep | |
| This one depends on the IRS. So, if they find it unfair to make you pay for your partner’s tax mix-up, you are eligible. | You will qualify for it if you earn your own keep. After all, injured spouse relief helps you keep your share of the refund. | |
| Application Time | Application Time | |
| You must apply for this within two years after the IRS tries to collect your money. So, do not procrastinate. | You must apply for injured spouse relief as soon as you realize there is a problem with your tax refund. |
3 steps to apply/file for Innocent spouse vs injured spouse relief
The application procedure of both Innocent spouse vs injured spouse relief can be broken down into three steps. Here we will discuss all the three steps of each to help you understand how the application method works. So, let’s begin:
- Innocent Spouse Relief
Here’s how you can apply for innocent spouse relief in three easy steps:
- Fill out the form 8857 if you want your golden ticket to the tax solution
- Explain why you had no idea about the tax issues and making you pay is unfair
- Let the IRS review your case. If they agree, you will escape extra taxes and penalties
- Injured Spouse Relief
Here’s how you can apply for injured spouse relief in three easy steps:
- Fill out the form 8379 carefully and attach it to your joint tax return
- Clear out all the information about debt with utter carefulness from your part
- Let the IRS review your case. If they give you green light, you will get your tax refund
Conclusion
You do not have to panic if tax troubles are testing your relationship. After all, Innocent spouse vs Injured spouse relief are the sidekicks you didn’t know you needed. Whether you are innocent in the tax matters or injured, these two can help you with relief from extra taxes and penalties. Make sure you are eligible for these before you apply. Additionally, to apply, fill the respective forms and be honest with the IRS. The rest depends entirely on the IRS. Clearly, if you are on the fair side, they will grant you the relief you want. If you need an expert by your side all through this, you should get in touch with tax superheroes like LifeBack Tax Relief. With such seasoned advisors by your side, the odds will naturally shift in your favor. You will get the outcome you want.
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