Middle of Divorce, what's the proper way to file taxes?

[Villanelle 4,122]

From IRS- "one of the conditions of your installment agreement is that any refund due to you, the IRS will automatically apply against taxes you owe. Because your refund isn't applied toward your regular monthly payment, continue making your installment agreement payments as scheduled until you pay your liability, including accrued penalties and interest, in full.
If your refund exceeds your total balance due on all outstanding liabilities including accruals, and you don't owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support, you'll receive a refund of the amount over and above what you owe."

 

So if you owe money they are going to take the refund. (the money was owed on a joint return so they consider you both owing it. It wont matter if she files alone- she still owes it so they will take it). Since its a relatively low amount- 300$ you could offer the amount to her as part of the divorce. But depending on how long your payment plan is- she may not get a refund next year as well. This is something you guys should discuss on how to handle. 

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You shouldnt have gotten any advance tax credits based on the types of insurance you guys have. So thats not going to be an issue it seems. You do want to look into the process for how to notify both insurance companies of the change in marital status since they are both income based programs. Each one of your household sizes will change altering your eligibility.  You should both remain eligible on your own, but you need to contact them ahead of time to find out the procedure. Some places have the "15th rule" (where changes need to be made by the 15th or they take effect the following 1st) You dont want to have a gap in coverage because you contacted them too late to report the change. 

 

[Trymester3 6]

Okay, so they will take money from her refund this year. The owed money will not be paid off by the time the next tax season rolls around (most likely). I will have to ask is there any way that I can sign an additional form with the IRS to ensure that only I have to pay the debt starting next year, and that she won't be charged from her refund. I'll have to ask the IRS.

[Villanelle 4,122]

3 hours ago, Trymester3 said:

Okay, so they will take money from her refund this year. The owed money will not be paid off by the time the next tax season rolls around (most likely). I will have to ask is there any way that I can sign an additional form with the IRS to ensure that only I have to pay the debt starting next year, and that she won't be charged from her refund. I'll have to ask the IRS.

They wont "not take" her refund because you ask them not to. As I said the tax debt was incurred on a married joint return, so you are both responsible. There is however forms SHE can file. Its under the category of  injured spouse relief. There are a few ways for her to request to not be held accountable for the debt you guys occurred together on the joint return. But they get complicated. Various forms and processes. In some she claims to not have known about the debt or returns filed, in others its just stating you are divorced and potentially showing the divorce that says its all on the other spouse.

Heres a few basic links:
https://www.irs.gov/uac/seven-facts-about-injured-spouse-relief
https://www.irs.gov/pub/irs-pdf/i8857.pdf

The IRS is like USCIS- they wont help you by telling you what you need to do. You need to contact a tax preparation service. Try the low income taxpayers assistance the IRS offers.  https://www.irs.gov/advocate/low-income-taxpayer-clinics/low-income-taxpayer-clinics

[Trymester3 6]

Thank you, I'll look into that low income taxpayers assistance.

 

I'll also look into the injured spouse thing for her, but in no way is she "injured".

 

Also, she literally didn't really know that I have debt on the 2014 and 2015 tax returns. English is not her first language, so I just handled al those legal things myself to make things easier.