Client is filing HH and filed joint return in 2013 and had an overpayment and made 1 estimated payment prior to divorce. I suggested she try to come to agreement with ex on how they want to split the overpayment and estimate on their 2014 tax return. PA has a form for constant to transfer but I can't find anything for the federal. Is there a form or do I attach a statement to the tax return explaining how the overpayment and estimate are being split? Hoping they come to an agreement!
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Federal can be Split
Federal refund can be split as well. Not sure of the nuts and bolts, but Drake software accommodates it.
The REAL problem is how to split the one estimated payment. You can control who gets what if you are
preparing both returns (assuming there is an agreement). If not, the husband and wife would have to come
to an agreement and be told that failure to live with it would invoke an ugly letter to one or both parties
from IRS. Having been told, they probably won't risk that. -
I've been told -- an agreement or 50/50 if they can't agree. And, that if the other doesn't do the same, expect a letter and bring it to me immediately. (If the ES was paid from her separate funds in her SSN, I'd try to make the case that it is her payment alone.)Comment
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The proper way to split the refund is to allocate based on income/tax liability and tax paid by each. Think about it...if one withheld more than sufficient taxes to cover their portion of the liability based on income then is it fair that the second to get a 50/50 split if the second did not pay enough taxes to cover the second's liability?Believe nothing you have not personally researched and verified.Comment
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