Marriage is a lot of work. Once you say your “I Dos,” you start to realize just how much more you have to learn about your spouse. Sometimes getting to know your spouse better can be great. Maybe you discover they are an amazing pastry chef or can handle stressful situations with astonishing grace! But other times, getting to know your spouse better can be a little bit more alarming. For instance, what if you discover they have extensive tax debt with the IRS? Even if you are the picture of taxpayer perfection, your spouse’s tax debt and previous history with the IRS can affect you. No matter how much you love your spouse, it’s important to know how their tax debt can impact you.
Can my spouse’s tax debt affect me?
Did you file your return jointly with your spouse? If so, and if your spouse owes back taxes or other federal debts, it can affect your refund. The interested agency can try to recover the debt using your tax refund if they are unable to do so using your spouse’s.
How do I protect my refund?
Why should you lose out on your refund because of your spouse’s mistakes? If you do not want your refund to be taken away to satisfy your spouse’s tax debt, you can file for Injured or Innocent Spouse Tax Relief. This is an IRS relief program that releases spouses from the responsibility to pay a debt entirely owed by their spouse. You can file for Injured Spouse Allocation by completing Form 8379.
How do I retrieve my refund?
Even if your refund has been taken due to your spouse’s tax debt, you may be able to retrieve it by filing for Injured or Innocent Spouse Relief. The following must be accurate to recover your refund:
- You filed a joint tax return with your spouse.
- The return had a refund due, all or a part of which was applied to satisfy your spouse’s debt.
- You reported income (from any source) on the tax return.
- Your spouse owes the entire debt.
- You made estimated tax payments or had your income withheld for paying taxes, and/or you claimed the Earned Income Tax Credit (EITC) or other refundable tax credits on the joint return you filed with your spouse.
You can file Form 8379, Injured Spouse Allocation with your tax return. If you are filing for Injured Spouse relief with your return, it may delay your refund as a result; the IRS will need time to review your return and process your request for relief. It might take up to 14 weeks for your refund to reach you.
If you have already filed your return, you may then file the form separately. The IRS takes around eight weeks to process Form 8379.
If you don’t qualify for Innocent Spouse Relief and are held liable for the due balance, contact one of our experienced tax consultants. We are well-equipped to find an alternative solution for you to resolve your tax issues.