NC preparers

[Super Mom]

Does anyone know if the Federal innocent spouse form works for NC? They have to pay on Fed. but supposed to get back some on state and spouse don't want all of that kept. I didn't see a NC form for that, any experience with this?

[bgiez]

In my state,

which is Michigan, the state will send a form after the return is filed so that you can split income & deductions between spouses. You return the completed form, then the state decides how much to take and how much to return. The state is very strict about the form - you must return the original which they sent to you, not a photocpy. Perhaps NC has something similar?

[erchess]

Wrong Term

Mom you are talking about Injured Spouse and to my knowledge NC has no such form. They can however file MFS for NC even though they file MFJ for Federal. At least I think that's right.

Here's a way to remember the difference between innocent and injured spouses that works for me. An INJURED SPOUSE is married to a debtor who incurred debts before the marriage or in years when the couple did not file jointly. An INNOCENT SPOUSE is married to a tax cheat who is hiding income or over claiming deductions and credits.

[Super Mom]

I will check on that, thanks!

[snowshine]

From the NCDOR FAQ page:

"If all or a portion of your refund is applied against your debt with another agency, the NC Department of Revenue will send you a notice to identify the state agency receiving your refund and the telephone number of the agency. If you file a joint tax return, your spouse's portion of the refund will not be applied to your debt. If a portion of your refund is sent to a state agency, the remainder of your refund will be mailed after the offset occurs.

If you owe the IRS, the total refund shown on your return may be sent to their agency. If you file a joint return, there is no provision in State or Federal law that allows the NC Department of Revenue to prorate your IRS refund. If you have "innocent spouse" status or "injured spouse" status with the IRS, you will need to contact the IRS at 1-800-829-1040 for any refund that may be due.

If you have had all or a portion of your refund withheld because of a debt and you have questions regarding the debt, you should contact the state agency or the IRS, who claimed your refund rather than the NC Department of Revenue. The Department of Revenue would not have any additional information concerning your balance with the state agency or with the IRS."



Looks like a federal obligation means MFS for NC is the only way to go. If its child support or another NC obligation, you can file jointly and still get the TP's share of the refund.