I just got married, and my new husband owes $3000 in back taxes. I recently read people's answers to a similar question, but I would still like to make sure. We have 2 children, and I usually receive a very nice refund at the end of the year. Will the IRS take that refund from me now that I am married? In this situation would it make more sense to file married filing separately?
Also, the debt is very old, from 1999. Is it still possible for him to contact the IRS and make arrangements to pay the debt off in installments?
Any help would be appreciated!
2007-06-05 18:22:18 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
If you file married separately, the IRS will not withhold your refund. Period. If you file married jointly, there is a way to get back your portion of the tax. File a form 8379 WITH the return. That form is the Injured Spouse Allocation. We have filed it after the fact for taxpayers affected by similar circumstances.
2007-06-06 10:41:42 · answer #1 · answered by taxman94066 2 · 0⤊ 0⤋
The best thing to do would be to just pay it off - it's not that much.
If you file a joint return, the IRS would take the entire refund unless you file an injured spouse form 8379. This would allow you to still get the part of the refund that's due to your earnings and withholding, and they'd just take his. It is probably cheaper (in total taxes due) than filing as married filing separately, although you could do that if you want to.
If your "very nice refund" was mainly due to getting EIC, you might not get that any more, since both of your incomes will be taken into consideration for eligibility. And if you file separately, you can NOT get EIC.
He can still contact the IRS to set up an installment plan, but that won't stop his refund from being taken toward the debt.
2007-06-05 18:37:54 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
If your new husband doesnt step up to the plate and start making payments on the back taxes, then yes, the IRS will deduct what he owes from your tax return at the end of the year. Filing married but seperately MAY help the situation, call your local H&R Block office, they will tell you right over the phone. Thats what they are there for!
2007-06-05 18:27:37 · answer #3 · answered by rmkenterprise 3 · 0⤊ 3⤋