While there are many benefits to checking “married filing jointly” on your tax return, there could also be serious consequences if your spouse incurs significant tax debt or has encountered legal issues. An experienced tax lawyer can help you navigate these complicated matters and potentially avoid penalization for your spouse’s mistakes or misconduct.
Read this article to learn more about innocent and injured spouse tax relief and how these programs could work in your favor if your spouse has gotten into hot water with Uncle Sam.
RELATED ARTICLE: For Better or For Worse: How Marriage Affects Your Tax Status
An injured spouse is someone who has all or part of their tax return applied to a current or former spouse’s tax debt or other federal debt, like unpaid student loans. In these circumstances, an injured spouse claim may help you recover your refund.
There are three requirements for filing as an injured spouse:
Filing a claim as an injured spouse can help you recover all or part of your tax return. You will need to fill out Form 8379 and follow the following instructions:
An innocent spouse is someone who owes additional taxes because their current or former spouse did not report income, reported an incorrect income amount, or claimed deductions and credits to which they were not entitled.
Innocent spouses may seek relief from being held financially or legally liable for their spouse’s actions regarding a joint tax return.
To qualify as an innocent spouse, you must:
When it comes to unpaid taxes, the Internal Revenue Service (IRS) applies a theory of joint and several liability. Under this legal theory, multiple people can be held liable for a single act. For jointly filed taxes, this means that you may be responsible for unpaid taxes even if your spouse is the one who misrepresented your collective tax information.
When filing an innocent spouse claim, you will need to send Form 8857 to one of the IRS addresses listed on the form. Additionally, the IRS must receive your claim within two years from the time that they originally attempted to collect the taxes.
We’ve covered some of the negative aspects of joint filing and the available options for receiving allocation and relief for your spouse’s actions. However, there are a multitude of benefits available to married couples that file their taxes jointly, including:
RELATED ARTICLE: Richer or Poorer: Should Spouses Jointly File Their Taxes?
If you are unsure about joint filing, contact a tax professional to discuss your options and help you determine whether filing jointly is the right option for your marriage.
If the IRS claimed your tax return due to your spouse’s debts or is holding you liable for missing taxes, contact S.H. Block Tax Services today for more information on filing an injured or innocent spouse claim.
Just married? There are many reasons married couple file their taxes jointly, but there are situations when filing separately is the better option. S.H. Block Tax Services can help you determine how joint filing will affect both you and your spouse, and whether it’s the right option for you.
Call S.H Block Tax Services today at (410) 872-8376 or contact us online for your free, no-obligation tax consultation.
The content provided here is for informational purposes only and should not be construed as legal advice on any subject.
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