Allocating credits correctly is very important when preparing Form 8379. Failure to allocate credits can cause issues with a taxpayer's return.
Follow the instructions below to allocate the credits to the applicable spouse in the tax software:
1. Complete Form 8379 and mark the correct taxpayer/spouse as the Injured Spouse. The Injured Spouse is the taxpayer who does not owe the debt.
2. Select line 16 or 17. Select Worksheets from the Active Options Window.
3. Allocate the credits to the Injured Spouse. Do this by entering the total amount of credits (Column a) in the allocated to Injured Spouse (Column b).
Need more help? Watch our quick video below...