Injured Spouse(s)

[rfk]

What is the thought about a couple filing injured spouse where both have this problem? Bringing into the marriage, wife owes back taxes, and husband owes child support. MFJ helps reduce taxable income but neither one wants previous debt allocated to other. Any suggestion or does the idea work to enter 8379's for both spouses. Have encountered this so I am wondering. Just husband and wife, no child.

Thanks.

rfk

[travis bickle]

This is purely off the top of my head

What is the thought about a couple filing injured spouse where both have this problem? Bringing into the marriage, wife owes back taxes, and husband owes child support. MFJ helps reduce taxable income but neither one wants previous debt allocated to other. Any suggestion or does the idea work to enter 8379's for both spouses. Have encountered this so I am wondering. Just husband and wife, no child.

Thanks.

rfk

and it is a very tired head at that.

Hypothetical scenario -
MFJ Potential Refund = $3,000
Husband owes = $1,000 child support
Wife owes = $7,000 back taxes.

In the above case, I would file Form 8379 in favor of the husband since he owes the least amount in this scenario. That would, hopefully, maximize any realized refund (of course, his delinquent child support would be withheld).

Am I missing something?

[rfk]

Main thing is

The wife has money owed as mentioned - back taxes - and husband owes for child support. The goal for their situation is for both of them to not be liable for the others debt. I suppose that if the husband does not make that much money, it is a moot point.

But in the end, the wife will not want to be held liable for husband's past child support IF any refund is due. However, at present, for the wife, there is money from back taxes and potentially money due from this filing season. So I am wondering what the best thing to do is regarding both individuals.

Thanks again.

rfk

[BOB W]

I would think if each filed an injured spouse form only their part of the refund would be allocated to their individual liability. In essence, one or both could get a refund based on their individual liability. But the important part is that each would be only paying their liability, which is the request of the T/P'ers.

Make sense????

[rfk]

Yes it makes sense

Makes sense, Bob. If it flies, the notion is what is wanted. Just have to make sure it flies with the IRS, etc. Most important thing is that they have the benefit of MFJ (afforded deductions) and the benefit of not paying the others debt liability. So if this does the trick I am all for it!

Thanks, Bob.

rfk

PS: I may have the IRS chime in on it too.

[BOB W]

Don't know why it shouldn't work.... First they figure T/P and spouse's refund amount and then pull the individual's debt amount from that calculation. If one has an excess, it will get refunded.