Can my spouse claim me as a dependant when I have owe back taxes? Will he be responsible for them?

[Michelle]

I have tax debt that I incurred before my marraige. I am
currently in uncollectible status with the IRS. They keep
any refunds I receive. I'm now unemployed wondering how we
should file. If my spouse were to claim me as a dependent
would they then keep his tax return. Should we file
seperately and, if so, would he be responsible in any way
for my past tax debt.

Thanks, Michelle

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[Paul Thomas, CPA]

I have tax debt that I incurred before my marraige. I am
currently in uncollectible status with the IRS. They keep
any refunds I receive. I'm now unemployed wondering how we
should file. If my spouse were to claim me as a dependent
would they then keep his tax return. Should we file
seperately and, if so, would he be responsible in any way
for my past tax debt.

First, your spouse can not claim you as a dependent. You
can file jointly however, or separately, whichever you like.

If you file jointly, he needs to file Form 8379 as an
"Injured Spouse" so any refund attributable to his income
and deductions will not be kept for your past
transgressions.

Do yourself a favor though, and try to get the back taxes
settled up before it causes problems. They don't just
disapear on their own.

--
Paul A. Thomas, CPA
Athens, Georgia

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[Oliver]

I have tax debt that I incurred before my marraige. I am
currently in uncollectible status with the IRS. They keep
any refunds I receive. I'm now unemployed wondering how we
should file. If my spouse were to claim me as a dependent
would they then keep his tax return. Should we file
seperately and, if so, would he be responsible in any way
for my past tax debt.

You can not be claimed as a dependent by your spouse.

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<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
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[Bob Sandler]

I have tax debt that I incurred before my marraige. I am

currently in uncollectible status with the IRS. They keep
any refunds I receive. I'm now unemployed wondering how we
should file. If my spouse were to claim me as a dependent
would they then keep his tax return. Should we file
seperately and, if so, would he be responsible in any way
for my past tax debt.

You should file a joint return with an injured spouse claim,
Form 8379, for your husband. That will allow him to get any
refund that he is entitled to on his own. He is not
responsible for your debt incurred prior to your marriage.

A person can never claim his or her spouse as a dependent.

Bob Sandler

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<< The foregoing was not intended or written to be used, >>
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[Condor]

I have tax debt that I incurred before my marraige. I am

currently in uncollectible status with the IRS. They keep
any refunds I receive. I'm now unemployed wondering how we
should file. If my spouse were to claim me as a dependent
would they then keep his tax return. Should we file
seperately and, if so, would he be responsible in any way
for my past tax debt.

A spouse is never the dependent of the other spouse, at
least never for tax purposes. Usually, the best way to file
under these circumstances is for the two of you to file a
married filing joint (MFJ) return with an injured spouse
claim (Form 8379) attached. If you are domiciled in a
community property state, IRS usually will apply one half of
the MFJ refund to your tax debt. If you live in a common
law state (and not to be confused with common law marriage),
also known as a separate property state, IRS will apply an
allocated portion (under these circumstances probably less
than half) of the MFJ refund to your tax debt. It would
help if you told us what state you live in.

Condor

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<< The foregoing was not intended or written to be used, >>
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[candaexpress]

Depends on your job prospects, outlook, how much you owe and
whether you want your wife to pay your taxes.

Uncollectible only means your are given a temporary
reprieve. IRS will come back to you and periodically ( 6 to
12 mos) seek financially justification on why they should
extend/retain your uncollectible status. And with your
household income now adequate enough....they might not
extend your status.

Other choices you have are to send a written "offer in
compromise" and pay a %age of tax dollars you owe.

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<< The foregoing was not intended or written to be used, >>
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<< that may be imposed upon the taxpayer. >>
<< >>
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[Herb Smith]

I have tax debt that I incurred before my marraige. I am
currently in uncollectible status with the IRS. They keep
any refunds I receive. I'm now unemployed wondering how we
should file. If my spouse were to claim me as a dependent
would they then keep his tax return. Should we file
seperately and, if so, would he be responsible in any way
for my past tax debt.

First, a spouse is never a "dependent" of the other spouse.
If you file Married Filing Joint you are allowed to claim
one EXEMPTION each, you claim your children as DEPENDENTS.

If you file as MFJ (and have refund due) the IRS will likely
confiscate the refund to pay your existing tax debt. Seems
fair, as you do owe the money, right? Your husband might not
agree, however.

The situation can be handled, more or less, in one of two
other ways. 1 - File as Married Filing SEPARATE. This will
separate your income from his, your deductions from his, and
result in separate tax liabilities or refunds. On the down
side, if you have minor children you will give up a number
of beneficial credits, including the Earned Income Credit.

2 - Your spouse can request treatment as an Injured Spouse,
claiming no responsibility for your debt. The IRS will
examine the allocation of Joint income, deductions, and
withholding and may allow his refund to stand. Be aware that
this process can add significantly to the processing time
for your return.

If you live in a community property state, neither method
will totally absolve him of paying off some of your debt,
even if you have no income. In such states, half of his
income is considered to be yours and vice versa.

OR, you could step up to the plate, pay off your back taxes
(request an installment plan from the IRS), and get on with
your life. It will not go away by itself.

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<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
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[bono9763]

I have tax debt that I incurred before my marraige. I am
currently in uncollectible status with the IRS. They keep
any refunds I receive. I'm now unemployed wondering how we
should file. If my spouse were to claim me as a dependent
would they then keep his tax return. Should we file
seperately and, if so, would he be responsible in any way
for my past tax debt.

You can file either jointly or separately, but in neither
case do you become his dependent. If you file jointly, he
can claim injured spouse status by filing form 8379 with
your tax return. This means that the IRS can't take any part
of the refund that is from his earnings.

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>

 

[Ernie Klein]

I have tax debt that I incurred before my marraige. I am
currently in uncollectible status with the IRS. They keep
any refunds I receive. I'm now unemployed wondering how we
should file. If my spouse were to claim me as a dependent
would they then keep his tax return. Should we file
seperately and, if so, would he be responsible in any way
for my past tax debt.

As others have said, the best thing to do is pay off your
back taxes, but assuming you have reason to put that off,
you can avoid your (and your spouses) refund from being
attached simply by not having any refund to attach.

Adjust your W-4 withholding so you will either have no
refund or end up paying a small amount (but not enough to
incur a penalty). That is the best way to withhold anyway.
Anyone that receives a large refund is making an interest
free loan to Uncle Sam.

--
-Ernie-

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>