Qualifications

To qualify for the injured spouse allocation, you must file your taxes as married filing jointly. You also must have earned an income during the tax year and have federal taxes withheld from that income. If you file your taxes as married filing separately or if you did not earn an income during the tax year, you will not qualify for the injured spouse allocation. The same qualifications typically apply to state income tax refund injured spouse relief, but you should consult with a tax adviser to discuss your state’s specific laws.

Income Allocation

When the IRS calculates an injured spouse allocation, to determine the amount of the joint tax refund that will be offset, it first separates your income from your husband's income. By doing so, the IRS can determine how much of the income tax overpayment is attributable to you and how much is attributable to your husband. An income tax overpayment is what entitles you to a refund. The IRS will apply your husband's overpayment to his child support arrearages and set aside your overpayment.

Tax Credits

After allocating your income, the IRS will then calculate the tax credits attributable to you and your husband, based on your income. For example, the IRS bases the child tax credit on income. It will apply the amount of you and your spouse’s child tax credit based on your individual incomes and not based on your joint adjusted gross income (AGI). The IRS will then apply your spouse’s portion of the tax credits to the past-due child support and add your portion of the credits to your tax refund amount. The IRS then calculates the Earned Income Credit (EIC) separately from all other tax credits.

Earned Income Credit

You also are entitled a portion of the EIC. The IRS calculates the EIC for you and your spouse separately to determine your portion of the EIC. For example, on your original joint return, you and your spouse's combined EIC was $4,000. When the IRS calculates your EIC separately, your EIC is $3,000 and your husband's is $2,000 for a total of $5,000. To calculate your separate portion of the EIC, the IRS divides your individual EIC amount of $3,000 by the total EIC amount of the separate calculations of $5,000. The IRS will then multiply that amount by the original EIC amount on your joint return of $4,000. The calculation looks like this: $3,000 / $5,000 = .60. Then, .60 x $4,000 = $2,400. The $2,400 is your portion of the EIC. The IRS applies this amount to your tax refund and applies your spouse's portion to the child support arrearage.