First time homebuyer again

[Janey]

Anyone have an idea on how to submit for the credit when 2009 was joint return. Taxpayer has child support lein on Federal Refund. Spouse is buying house 2010 Taxpayer not on any paperwork and does not want $8000 to go to back child support.

[Lion]

Father?!

Hope his spouse isn't letting him father any children by her!

[Koss]

Injured Spouse

Form 8379 allows you to allocate various items on the return between the two spouses, as if they had filed separately. The IRS then uses its own formula to determine what portion of the refund is allocated to each spouse. Only that portion of the refund that is allocated to the deadbeat spouse will be taken to pay his debt.

The allocation formula used by the IRS has never been fully revealed. It's kinda complicated because it involves both the ratio of the income of the spouses, as well as the ratio of the withholding, and then they have to somehow allocate credits, such as EIC and the child care credit, that would not be available if the couple had filed separately.

But in your case, you have a pretty solid basis for allocating the entire homebuyer credit to that spouse who actually made the purchase. You said the deadbeat taxpayer is "not on the paperwork."

So it's worth a try. The IRS might not buy it, and might still split the credit at $4000 for each spouse, on the grounds that it would work that way if they filed separately.

But completing the 8379 and allocating the whole credit to the other spouse is not an unreasonable approach. The IRS has taken the position that when an unmarried couple buys a house together, they can allocate the credit in any way that is reasonable...

BMK

[Janey]

Thanks I was thinking injured spouse Do you think she would be better waiting until 2010 return and file seperatly? or just try injured spouse as an amendment?. and no she is not fathering any children with him. Unfortuantlely while his kids were growing he was/is definately deadbeat. Now they are grown he will die with this debt its huge. Good for the ex she is not going to forgive it.

[BP.]

Do you think she would be better waiting until 2010 return and file seperatly?

I think if MFS only half the credit is available.

[Janey]

Thanks again I'll look that up.

[dyne]

This taxpayer should do what is right and pay the child support. I would not do anything
to help him avoid his obligation to the child. And I would not want him as a client.