Injured spouse. Spouse has no income in 2020

[Jack from Ohio]

Question:  Can a spouse, with no income, claim injured spouse?  He is paying on long overdue student loans.  2019, both had income, so she claimed injured spouse, we prorated everything accordingly, and everything was fine.  Here are facts for 2020:

Couple filing joint.  She has no income in 2020.

AGI-$27K.  2 children, 8 & 11.  Tax paid in of $981.  EIC of $5477.  ACTC of $2800.  Total refund of $9,258.

I have only slightly researched, and my gut says no.  I am up to my eyeballs in late and returns that I am still working to complete.  I am hoping some of you can verify my thoughts, or explain what she may be able to claim, as injured spouse.

[Gail in Virginia]

Jack, I can't provide a cite, but if she were filing on her own, she would not be entitled to any refund because she has no earned income and did not provide support for their children. So I would agree with your gut. 

[Lion EA]

I don't know, but I think you're both correct. From memory, from classes, and from not-recent experiences, the injured spouse form gets her back her own withholding if due her as part of the joint refund. Gets her what would be hers if filing separately without having to use the less beneficial MFS tax rates.

As a quick check, if your software does a down & dirty MFJ vs MFS comparison, look at her column and you'll probably see $0 after standard/itemized deductions, with all the credits in his column. As Gail said, she didn't support their children or pay the household expenses.

[Max W]

Without having any tax withheld and without any earned income, there is nothing to be claimed. No tax, no injury. The only exceptions are for PTC and community property states.

 With $27K income and a family of four he should be able to get a moratorium on his student loan payments.   With some of the statements coming out of DC, it may be that some of the student loans will be dismissed.

 

[HV Ken]

4 hours ago, Lion EA said:

As a quick check, if your software does a down & dirty MFJ vs MFS comparison....

If your software??? Isn't this an ATX board??? 

[Gail in Virginia]

21 minutes ago, HV Ken said:

If your software??? Isn't this an ATX board??? 

Yes, but some of us are holdovers who used to use ATX, now use something different, but still love the community at this board. 

 

[Lion EA]

I began with this board, actually the predecessor to this board, when I was at HRB and we used ATX for entity returns. I continued here when I went out on my own, but I ended up purchasing ProSystem fx. I knew these people, knew their expertise and helpfulness and humor. I learn a lot about tax law here and choose to stay.