How do I handle this?

[Copperarab]

What is the name of your state? Oklahoma

I am going through a divorce (16 yrs married), filed 9/07. The stbx, who lives in the marital home we purchased 4 years ago and has both our names on, informed me of a letter from the IRS regarding 2006 taxes..

The letter states that the taxes for 2006 were done incorrectly. We did them online, I can't remember through who, but dependants were myself and my granddaughter..assets the house.

The forms state that $3,765 is owed..Going through the paperwork, it's from his 401k that he took money out of to put into repairs on the house. I guess we somehow didnt add them in as income, our mistake.

I have not been employed for 7 years though we file joint married. My name, of course, is on the letter since we file together, but how responsible am I for this debt?

He is the one who made the money (82K)
He is the one who pulled money out of HIS 401k
He has the house
Any refunds he has recieved/will receive are taken by the IRS for arreages on child support for a child he had before I married him (owes $38k still)

What do I do? I am now working to support my household, myself and granddaughter. I dont make 1/4 of what he makes. When I file next year, are MY tax returns going to be taken from me? I am poor and am a student on top of this...I live in a 1 bedroom apt while he is in the 4 bedroom, 2 living area, 2 bath home with pool, koi pond, etc..

Will I have this put on MY credit?

ANYTHING you can tell me would be MUCH appreciated!

ThanksWhat is the name of your state?

 

[LdiJ]

What is the name of your state? Oklahoma

I am going through a divorce (16 yrs married), filed 9/07. The stbx, who lives in the marital home we purchased 4 years ago and has both our names on, informed me of a letter from the IRS regarding 2006 taxes..

The letter states that the taxes for 2006 were done incorrectly. We did them online, I can't remember through who, but dependants were myself and my granddaughter..assets the house.

The forms state that $3,765 is owed..Going through the paperwork, it's from his 401k that he took money out of to put into repairs on the house. I guess we somehow didnt add them in as income, our mistake.

I have not been employed for 7 years though we file joint married. My name, of course, is on the letter since we file together, but how responsible am I for this debt?

He is the one who made the money (82K)
He is the one who pulled money out of HIS 401k
He has the house
Any refunds he has recieved/will receive are taken by the IRS for arreages on child support for a child he had before I married him (owes $38k still)

What do I do? I am now working to support my household, myself and granddaughter. I dont make 1/4 of what he makes. When I file next year, are MY tax returns going to be taken from me? I am poor and am a student on top of this...I live in a 1 bedroom apt while he is in the 4 bedroom, 2 living area, 2 bath home with pool, koi pond, etc..

Will I have this put on MY credit?

ANYTHING you can tell me would be MUCH appreciated!

ThanksWhat is the name of your state?

I am truly sorry, but yes, your refunds will get taken until the balance on the joint return is paid off.....and yes, if you are not on a payment plan with the IRS it will also end up on your credit report.

The good news is, is that the IRS takes their bite first, therefore his refunds will go to the tax debt also until it is paid off.

You can ask the judge, in the divorce case, to order him to pay the back taxes...however if he doesn't pay them off before you file, again, your refund will get taken.

You might consider holding off filing your 2008 return to see how much gets paid off with his refund....if he even gets a refund this time.

 

[Copperarab]

Thanks LDiJ, I appreciate you answering me..

So filing innocent/injured spouse doesnt apply in this situation? It just seems unfair considering it was his income/taxes, his 401k, and he has the house that benefited from the money.

He hasnt file 2007 taxes as yet. He asked me to do them for him, which I did online. The amount of Fed return ($1084) will be taken of course, and thats filing as married with the granddaughter since I was in the home 7 months of last year, but he owes a bit over $200 in state, thus he hasnt submitted what I did for him...without us as deductibles, he would owe on Federal $2724.

When we did the 2006 taxes, the refund was around $1600, it was taken for his back support..something I had no clue of when I married him.

I havent told my attorney as yet about the taxes. We are suppose to go to mediation soon. As it stands, the temp orders in November had him paying down all marital bills which he has not done. My credit score went from the 700's to the 400's..

Thanks again!

 

[LdiJ]

Thanks LDiJ, I appreciate you answering me..

So filing innocent/injured spouse doesnt apply in this situation? It just seems unfair considering it was his income/taxes, his 401k, and he has the house that benefited from the money.

He hasnt file 2007 taxes as yet. He asked me to do them for him, which I did online. The amount of Fed return ($1084) will be taken of course, and thats filing as married with the granddaughter since I was in the home 7 months of last year, but he owes a bit over $200 in state, thus he hasnt submitted what I did for him...without us as deductibles, he would owe on Federal $2724.

When we did the 2006 taxes, the refund was around $1600, it was taken for his back support..something I had no clue of when I married him.

I havent told my attorney as yet about the taxes. We are suppose to go to mediation soon. As it stands, the temp orders in November had him paying down all marital bills which he has not done. My credit score went from the 700's to the 400's..

Thanks again!

Innocent spouse might have a slim chance of prevailing, if you could honestly say that you did not know that he took out the money from his 401k. However, you really can't say that, because you did know...and you did sign the return.

He probably has not changed his withholding for 2008, so odds are that he will owe for 2008, and that you will be the only person getting a refund....so you really need to try to get the judge to order him to pay the back taxes before January of 2009.