There are few things more painful than a divorce. It’s so heartbreaking that it’s become a common trope in movies and television. If you’re divorced, it’s possible that your ex-spouse owes back taxes but you don’t have the money to pay them yourself.
This is where being an “injured spouse” comes into play. IRS injured spouse relief can help you get some money off the divorce bill. It is a complicated thing, however, and it depends on how the divorce was handled.
Read on and look at the ins and outs of it here. Let’s get started!
Defining Injured Spouse Relief
When your spouse owes money to the IRS, it can feel like you’re being penalized for something that isn’t your fault. But, luckily, the IRS offers a little relief in the form of injured spouse relief.
This is available to taxpayers who have filed a joint tax return with a spouse who is responsible for the entire debt. It allows the taxpayer to file for a refund of any overpaid taxes.
If you think you might qualify for it, the first step is to file a joint tax return. Then, if you’re still owed a refund, you can file form 8379 with your tax return.
What Does It Allow
Injured spouse relief allows a taxpayer to be relieved of responsibility for a tax debt incurred by their spouse. The IRS will consider several factors in determining whether to grant relief.
It includes whether the taxpayer had any knowledge of the tax debt and whether they benefited from it.
Qualifications for Injured Spouse Relief
If you qualify for Injured Spouse Relief, the IRS will take into account only your share of any joint tax liability when collecting from you. This means that if your spouse owes taxes and the IRS tries to collect from you, you may qualify for it.
To qualify, you must have:
- Filed a joint tax return
- Had taxes withheld from your own income
- Not being responsible for the debt your spouse owes
- Not have benefited from the debt in any way
Consequences of Not Filing for Injured Spouse Relief
If you qualify, you will only be responsible for your portion of the tax debt. The IRS will go after your spouse for the remainder of the debt.
If you do not file for the said relief and you are responsible for the tax debt, the IRS can take your tax refund, garnish your wages, or put a lien on your property. You will suffer financial hardship if they require you to pay the debt even if you’re not liable for it.
File for Injured Spouse Relief Today
The IRS injured spouse relief program can help taxpayers who are burdened with a tax debt that is the result of their spouse’s actions. The program can help by removing the responsibility of the debt from the taxpayer, and providing financial assistance.
To qualify for the program, taxpayers must demonstrate that they are not accountable for the said debt.
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