Filling Up-coming Tax returns 2012 Seperately just before ROC

[Wizzle 41]

Hello to you all and merry Christmas in advance!

Please i would like advice on this topic. I am due to remove my 2 years PR condition next September, however my wife and i are considering filling the next Tax returns filed as married,but separately We filled jointly last year and all the refund check was diverted to a school loan company. This was a loan my wife co-signed for her ex-husband couple of years back. She called the loan company and they said her ex-husband stopped paying and that's why they are after her now, and the loan is well over $18,000 plus interest. My wife has decided to file for bankruptcy to clear her name off this and some other medical bills she has pending on her account as soon as we get the tax refund next year. We have all other proofs required from married couple.

My main concern/question now is, Would it count against us if we filled as married but separately and i include my step-daughter on my taxes? My wife would file separately so they can come after only her check and not both of us. I just want to be sure USCIS would not give us grief and headache about this in September when i am ROC. Thanks in advance. You advice and suggestions are welcome. God bless you all.

Edited December 13, 2012 by Wizzle

[Hypnos 6,578]

USCIS will not care about your tax returns as long as you either file "married filing jointly" or "married filing separately". Anything other than these two will raise red flags that you can guarantee they will ask you about.

[Dave&Roza 748]

Hello to you all and merry Christmas in advance!

Please i would like advice on this topic. I am due to remove my 2 years PR condition next September, however my wife and i are considering filling the next Tax returns filed as married,but separately We filled jointly last year and all the refund check was diverted to a school loan company. This was a loan my wife co-signed for her ex-husband couple of years back. She called the loan company and they said her ex-husband stopped paying and that's why they are after her now, and the loan is well over $18,000 plus interest. My wife has decided to file for bankruptcy to clear her name off this and some other medical bills she has pending on her account as soon as we get the tax refund next year. We have all other proofs required from married couple.

My main concern/question now is, Would it count against us if we filled as married but separately and i include my step-daughter on my taxes? My wife would file separately so they can come after only her check and not both of us. I just want to be sure USCIS would not give us grief and headache about this in September when i am ROC. Thanks in advance. You advice and suggestions are welcome. God bless you all.

You can file your tax returns as "married filing jointly" or "married filing seperately". I would think your wife should have had the courts remove her from the responsibility of the loan during the divorce process. She is on the hook for this loan as she co-signed for it. If she declares bankruptcy the loan may or may not disappear as bankruptcy laws have changed and debts are no longer just wiped out. This is a serious step that I think requires a compentent lawyer and/or financial advisor as to the consquencies of declaring bankruptcy--the least of which is 7 years of bad credit rating that you may share being that you are married to her. I think you need to stop worrying how this will impact the ROC and worry more about how it will impact your future together. I would see about getting off of being a co-signer as she is no longer married to the ex as a first step. She is responsible for the loan as she did sign the papers. Maybe she can work out a payment option. Is the ex responsible for any child support payments? She might be able to get the courts to use that as a means of terminating her responsibility for the loan.

Good luck,

Dave

Edited December 13, 2012 by Dave&Roza

[Brandi n Michael 8]

Bankruptcy will not clear student loan debt as far as I know if it is from Dept. of Education (government type loan). She is in for a long battle to get it cleared off her plate. She will have to talk to Dept. of Education and get her name removed off of it, if she co-signed she is stuck with it and maybe you guys can do a settlement.

USCIS does not care about debt owed even if they are in collections/defaulted. As long as you file in the married section either married jointly or married separated you are fine.

Good Luck.

[Martyshk 137]

Bankruptcy will not clear student loan debt as far as I know if it is from Dept. of Education (government type loan).

If I'm not mistaken it won't clear private student loans either....

[Brother Hesekiel 2,236]

It doesn't matter if you filed jointly or separately, as long as you filed both as being married to one another and with the same address.

A student loan can never be discharged, not even through bankruptcy. It's the worst kind of loan a person can have as it grows and grows and grows and never goes away.

[Martyshk 137]

A student loan can never be discharged, not even through bankruptcy. It's the worst kind of loan a person can have as it grows and grows and grows and never goes away.

Well, no, it does go away, but by that time you grandchildren have already started taking out their own student loans

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To the OP: Just like everyone said here - as long as you file "married", same address and all, filing "married separately" doesn't matter.

[Wizzle 41]

I just want to use this opportunity to thank everyone that have contributed their advice. You all have been very helpful with your information, i would follow your suggestions, and would keep you all posted. You all stay blessed and safe.

"Happy holidays"

Well, no, it does go away, but by that time you grandchildren have already started taking out their own student loans

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To the OP: Just like everyone said here - as long as you file "married", same address and all, filing "married separately" doesn't matter.

[himher 634]

Check the difference carefully.

When you file married/separately you usually pay a LOT more in taxes and that is tax money you were entitled to keep and spend.

It is best to increase your number of exemptions on your I9 at your employer so that you owe a little bit to the IRS at the end of the year rather than get a refund then pay what the difference /what you owe to the IRS when you file your taxes.

Doing so denies anything to the student loan company. You gave the government a free loan by letting your employer withhold too much then they repaid their free loan to a student loan collecter. Not good business.

Edited December 14, 2012 by himher

[Martyshk 137]

Check the difference carefully.

When you file married/separately you usually pay a LOT more in taxes and that is tax money you were entitled to keep and spend.

It is best to increase your number of exemptions on your I9 at your employer so that you owe a little bit to the IRS at the end of the year rather than get a refund then pay what the difference /what you owe to the IRS when you file your taxes.

Doing so denies anything to the student loan company. You gave the government a free loan by letting your employer withhold too much then they repaid their free loan to a student loan collecter. Not good business.

That's actually very smart! Never though of it that way (never had to deal with levies or collections, so yeah)

This might help http://apps.irs.gov/app/withholdingcalculator/

Edited December 14, 2012 by Martyshk