Injured Spouse Allocation, can tax credits for children be allocated to a spouse with no income?
April 30, 2009
Tim H asked:
My wife and I file jointly and our refund is being taken for offset. I owe money towards a federal student loan but would have a nice tax return because of the earned income credit and the child tax credit. Can the child tax credit be allocated to my wife on form 8379? I understand the income credit being tied to my income, but is the child tax credit tied to me as well?
My wife and I file jointly and our refund is being taken for offset. I owe money towards a federal student loan but would have a nice tax return because of the earned income credit and the child tax credit. Can the child tax credit be allocated to my wife on form 8379? I understand the income credit being tied to my income, but is the child tax credit tied to me as well?
2 Responses to “Injured Spouse Allocation, can tax credits for children be allocated to a spouse with no income?”
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May 1st, 2009 at 1:23 am
The child tax credit is tied to whomever would claim the children.
BUT, unless you are in a community property state, the fact that she has no income means she still gets nothing.
In the CPS state, she’d get half the refund coming from withholding and child tax credit.
May 2nd, 2009 at 1:40 pm
all of the credits are tied to the income…and all of the income is yours so there is no reason/need to file for injured spouse/innocent spouse relief because she has no income to apply the relief to