Finance Q&A

wondering about irs debt any help ?

Q. I owe taxes to the IRS for the years 2000-2004, and have an installment agreement to pay it back. I was married last year (2006) - will my new husband be responsible for this debt? I realize that if I file a return that shows I am due a refund, the refund will be applied toward my debt. If we file jointly and are due a refund - will they do the same? What if we file separately? Will any refund he is due be taken to pay toward my debt? Common sense would tell me that if I incurred the debt before being married, he should not be responsible.

A. _You can file a joint return and have him complete Form 8379 to file as an injured spouse. This protects his share of any tax refund _No. However, if you live in a community property state, "his" assets can be at risk. You include an "injured spouse" claim with your return. The refund is apportioned so that only your share of the refund is applied to your separate debt. See the 1040 instructions. You'll probably pay more tax in total, but the only way to be sure is to run the numbers.

Ask Edwards a Finance Question

Other Questions:

needing help for getting out of your own debt

I need some advice to help us get out of credit card debt. We took out a large loan last year to do some work on our house. And we are able to pay over the minimum amount but the interest eats up most of that, and we can not put more that a fe...