Being Married and Filing Taxes
Plenty of taxpayers who are Married choose to file a joint tax return because of the many benefits this status will provide them. When filing a Married filing joint return, The IRS holds both taxpayers jointly and evenly at fault for the tax liability.This will also include additional tax, penalties and interest that may become due, even if later in life the married couple ends up filing for divorce.
This rule also applies to situations in which you have a judge signed divorce decree and it states that one party is responsible for the entire debt. The IRS will still look to collect the tax that is due from both parties. There are many cases where a spouse or former spouse may be innocent of the other spouse’s tax debt. There may be relief if special qualifying events are determined.
Differences Between Innocent Spouse And Injured Spouse Relief
When Can You File A Joint Return With Your Spouse?
For example, a married couple filed and signed the joint return but, in the future, receives a letter from the IRS stating that there was $10,000.00 in income that was never disclosed. If you become aware that this income was related to only your former spouse during the marriage, you wouldn’t have reasonably known anything about it.
What is Incorrect Deduction Credit
Signature Under Duress
Being a victim of domestic violence and proving that you signed the return without questioning any items reported due to the fact you were in fear that your ex-spouse would strike back against you would make you a prime candidate for Innocent Spouse Relief. If you were a victim and signed the return in fear, then the IRS will not count the return as a joint return. You may become responsible to file your own return for that year, upon determination.
Getting a Tax Refund Back
In contrast, an Injured Spouse Relief claim would apply to taxpayers that are still married. You would qualify as an Injured Spouse if you filed and signed the joint tax return and your part of the tax refund was applied to your spouse’s valid past federal debt. Past debt would include federal tax debt, state tax debt, child support payments, student loans or alimony payments. You may be able to get your part of the tax refund back by filing an Injured Spouse Allocation. To qualify for an Injured Spouse relief there are two factors that must be true for yourself.
The Forms That Are Needed To File
In order to ensure timely sort out of Form 8379 you must attach a copy of all income information (W-2’s, 1099’s) and make sure that it shows your portion of the federal income tax that was withheld. The handling of Form 8379 may be delayed if these forms are not attached or should the form be incomplete when filed. This form can be filed along with your joint tax return or filed by itself after the joint return is submitted. Given all the facts of an Innocent and Injured Spouse relief, it would be unfair to hold you liable for the tax that is due related to a former spouse.
Currently Married, Divorced or Legally Separated
The separation is based on a calculation and takes the amounts of income from each spouse into thought. You will only become responsible for your portion of the tax debt, along with any added penalties and interest. Each case is considered on an individual level and based on supported information.