I have always worked an paid taxes, however there were several years in which my husband convinced me to file with him. Now my very modest check is only about $100.00/week after it is garnished and i am so afraid that i won't be able to raise my children properly if something were to happen to him is there any precautions i can take?
2007-07-06 20:37:37 · 5 answers · asked by mandarn 1 in Business & Finance ➔ Taxes ➔ United States
I went through the same thing. I ended up paying for most of my xhusband's unpaid taxes and tax penalties (while married, he was self employed-I worked for him but no paycheck, everything went to his account) I Paid a chunk of $ to have taxes done by Pro. he lied each yr, said he sent them in... all taken care of --but he never even filed them! 3 yrs of taxes plus penalties, plus interest.
I ended up paying well over 3/4 of the huge debt myself (it took 10 yrs of my tax returns & child tax credits + additional $100/mo. for 4 of those yrs. to pay it off. I was a single mom sharing/rent for an attic room w/another single parent (2kids &2 adults) He had no dependents, 3bdr. house,, made several times what I earned. But he claimed multi exemptions through the yr. and always owed taxes.
I tried to at least get them to split the debt in half between us but they won't do that.
The tax debts your spouse incurs while you're married are yours forever until they are paid. They will take it from whoever they can. If they can't get any money out of him, but they can get it from you. Then you will pay for all of it. Makes no difference to them (and the longer it takes to pay off the more they get in interest)
Tax lawyer may be able to offer some options, but not to someone who only makes $100/wk. I made more than that but couldn't afford such services.
2007-07-06 21:12:00 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Generally, couples file joint returns unless there is a specific reason for not filing a joint tax return. For example, you think that your husband is cheating on his taxes. If that is the case, then file separately. You don't want to be responsible for his taxes.
When you say "if something were to happen to him," do you mean what if he dies? If so, then you need to have a life insurance policy to replace the income that would be lost. In that case, a good rule of thumb is to have a life insurance policy that is 8 - 10 times your husbands gross income. For example, if your husband earns $100,000 a year, then your policy should be for at least $800,000. Life insurance proceeds are not subject to income taxes. However, they are consider part of you husbands estate and could be subject to estate taxes.
2007-07-07 01:13:01 · answer #2 · answered by Steve 6 · 0⤊ 0⤋
Unfortunately, if you filed joint returns with him for those years and he was cheating on his taxes, you are equally legally responsible for the debt. There is something called "innocent spouse" in the law that could get you out of it, but qualifying for that is very difficult. See http://www.irs.gov/individuals/article/0,,id=96786,00.html
If you are still married you would not be eligible.
Consult a CPA or enrolled agent for advice on your situation. It's possible that there's something that can be done, but also very possible you are stuck with it. If you are still married, you almost certainly are.
2007-07-07 04:08:13 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
There is something called "innocent spouse relief", there are also many CPA's who donate their time to help the less fortunate. Contact you state society of CPA's. You might also check AICPA.ORG. (American institute of Certified Public Accountants).
Every State has a state society of CPA's.
2007-07-07 02:53:50 · answer #4 · answered by smh60437 3 · 0⤊ 0⤋
you really need to contact a lawyer who specializes in taxes. most first consults are free. good luck to you.
2007-07-06 20:41:43 · answer #5 · answered by Anonymous · 0⤊ 0⤋