MFJ with Injured Spouse vs. MFS

[Bill Tubbs]

Couple just married in 2006. He owes back child-support and refunds would get intercepted. This couple would have no dependents to claim, no other deductions -- in fact, W-2's are their only tax documents. If we filed MFJ we'd add Form 8379 "Injured Spouse Allocation", according to the community property laws of Wisconsin.

1) anyone know how long the refund is delayed while someone at the IRS reviews the 8379?

2) if we instead filed both as MFS, I am presuming his refund would be intercepted, but I'm thinking that her refunds would NOT be intercepted. Is that correct? Would we attach anything to her returns?

Thanks,
Bill

[taxmandan]

1. My experience with Injured Spouse on MFJ is that it takes 2-3 months before the partial refund is issued.

2. TheIRS would not be concerned with her if she is not on the return with him, he is the only one they will want to collect from for the child support. Nothing to attach to hers except his SSN and name on the 1040.

[jainen]

Nothing else

>>Nothing to attach to hers except his SSN and name on the 1040<<

Nothing else except half his community income.

[Bill Tubbs]

Thanks Jainen and Taxmandan.

I'm figuring then if their combined tax liability of 2 MFS returns is similar to the tax liability of the MFJ that filing the 2 MFS they'd get about the same amount refunded (minus my fee for 2 returns), and the MFS refund should be within the normal 2 week timeframe.

Either way we go, I'm gonna have fun explaining community property laws....

Thanks again.
Bill

[jainen]

protect her own refund

>>explaining community property laws<<

Community property is only an issue for earnings after they got married. If married late in the year, MFJ and MFS would be about the same, but the injured spouse rule ignores comm. prop. so she could still protect her own refund.