Key Takeaways
Your liability depends on how you file and when the debt was created. Joint returns generally make both spouses fully responsible, while separate filings and pre-marriage debts can limit exposure.
Community property states complicate things. Even with separate filings, you may still be responsible for half of the tax liability on income earned during the marriage.
IRS relief programs can protect you. Options like Innocent Spouse Relief, Injured Spouse Relief, Separation of Liability, and Equitable Relief can help you avoid unfair responsibility.
Am I Responsible for My Spouse’s Tax Debt?
Your responsibility for a spouse’s tax debt is tied to two key factors: how you file your taxes and when the debt was created. If you file a joint return, the IRS can pursue either of you for the full amount owed, including penalties and interest. On the other hand, if you file separately, you’re generally only accountable for your own taxes. The timing matters, too; taxes owed before the marriage are usually the responsibility of the spouse who incurred them, while debts racked up during the marriage can impact both partners.
Joint Filings: Shared Liability, Shared Risk
If you and your spouse filed a joint tax return, the IRS holds both of you jointly and severally liable, meaning either partner can be pursued for the full amount owed, including penalties and interest. This is true even if you have no knowledge of the missing income or improper deductions.
Filing Separately vs. Community Property States: A Complicated Divide
Filing separately can shield you from your spouse’s mistakes. Your personal liability is limited to your own tax records. This status, however, can lead to higher tax rates or reduced eligibility for some tax breaks.
If you live in a community property state – like California, Texas, or Washington – things get more complex. Most income and assets acquired during the marriage are considered jointly owned, which can still expose you to half the tax liability, even on separate filings.
Relief Options: You’re Not on Your Own
Tax law recognizes that you may not always be responsible for your spouse’s tax debt. Here’s how you can protect yourself.
Innocent Spouse Relief
If you filed jointly and your spouse committed the errors without your knowledge – like unreported income or false deductions – you may be eligible for relief. File Form 8857, Request for Innocent Spouse Relief, within two years of the IRS notification to request exemption from paying that portion of the tax debt.
Injured Spouse Relief
If your refund was intercepted because of your spouse’s prior debts (back taxes, unpaid child support, defaulted student loans, etc.), you can file Form 8379, Injured Spouse Allocation, to reclaim your portion. This can be submitted with your return or on its own afterward, but must be filed within three years or two years of the payment, whichever is later.
Separation of Liability
For those who are no longer living together, legally separated, or divorced, Separation of Liability may be an option. When a joint return is filed, the IRS divides the tax debt (including penalties and interest) between spouses based on their income, deductions, and credits. To request this type of relief, use Form 8857 and file within two years of receiving the balance due notice.
Equitable Relief
If you don’t qualify for any of the above relief options, you may still be eligible for help through what is known as equitable relief. The IRS grants this type of relief if it feels it would be unfair to hold you responsible for your spouse’s tax debt. Similar to Innocent Spouse Relief and Separation of Liability, you’ll need to submit Form 8857 within two years of receiving a notice regarding the debt.
Final Thoughts
Tax issues can feel overwhelming, but they don’t have to define you. Your financial future is worth defending, and there are clear, proven paths forward.
If you’re concerned about how your spouse’s tax debt could impact your finances, reach out for a complimentary consultation with Tax Defense Network by calling 855-476-6920.