What is the definition of an injured spouse in the context of tax refunds?

An injured spouse refers to the individual whose tax refund is intercepted to pay a debt owed by their spouse, such as unpaid taxes, student loans, or child support. This individual may have contributed to the joint tax refund through their own earnings but is not responsible for the debt that caused the refund to be withheld. In this context, the classification as "injured" underscores that the spouse is negatively affected when their portion of the refund is seized for the other spouse's obligations.

The other options do not accurately describe the scenario of an injured spouse. A legally binding contract, an Individual Taxpayer Identification Number (ITIN), or being a higher-income earner do not have a direct relationship to the concept of an injured spouse regarding tax refunds. The focus is specifically on the situation where one spouse's refund is used to cover another spouse's debts, which is why that particular definition is the correct one.