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    MFJ w/spousal support

    Couple has separated. (Not a "legal separation" status.) Divorce pending. He pays her court ordered spousal support. They intended that he'd file MFS & she (legitimately) HOH.

    He's my client still; I had to cut her loose, of course. He has large tax liability.

    When he approached her about one more year of MFJ, she said her tax preparer told her that because she is receiving spousal support, filing MFJ would be a "huge red flag."

    What is that about?? If MFJ, the spousal support is a non-issue. Does this preparer know something that I have yet to learn about??

    Thanks!
    Last edited by BP.; 04-06-2013, 12:06 PM.

    #2
    Originally posted by BP. View Post
    Couple has separated. (Not a "legal separation" status.) Divorce pending. He pays her court ordered spousal support. They intended that he'd file MFS & she (legitimately) HOH.

    He's my client still; I had to cut her loose, of course. He has large tax liability.

    When he approached her about one more year of MFJ, she said her tax preparer told her that because she is receiving spousal support, filing MFJ would be a "huge red flag."

    What is that about?? If MFJ, the spousal support is a non-issue. Does this preparer know something that I have yet to learn about??

    Thanks!
    If they've filed jointly in the past up until this year in question, there's no reason IRS should notice any red flag. In fact IRS doesn't even know their present marital situation.

    Naturally if they do file jointly, the spousal support will be a non issue, being neither income nor a deduction.
    ChEAr$,
    Harlan Lunsford, EA n LA

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      #3
      It will be a red flag if he wants to file MFJ and deduct the spousal support. Which, of course, he can't do. Don't understand what the other prep is talking about.

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