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Tax Bill responsibility for separated couple

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SilverRabbit

Junior Member
What is the name of your state (only U.S. law)? ND

My husband filed for divorce in January. He just got back from the tax person and stated that we owe $14,000 in taxes for 2014. For the month of January in 2014 he was a soul proprietorship and switched to an S Corp. in February. He paid some of the taxes due such as Social Security. My job takes out the full amount of taxes as I claim single no exemptions.

I am very concerned about this at this point as I had actually been expecting a nominal refund not this amount. My understanding was that he had hired the same firm that is doing our taxes to calculate the amount of taxes that need to be paid throughout the year and had been making those payments.

Will I be liable for half of the $14,000? I understand that the money he earned benefited both parties but I feel that if he would've appropriately tax planned as he had said he had that we would not be in the situation that we are in right now. Please let me know if that is an incorrect thought process. I asked him via text today what his plan was for pain that and he at this point has not responded or refuses to respond. My gut is telling me that he is going to state that I need to pay half as it is a joint return.

Thank you!
 


LdiJ

Senior Member
What is the name of your state (only U.S. law)? ND

My husband filed for divorce in January. He just got back from the tax person and stated that we owe $14,000 in taxes for 2014. For the month of January in 2014 he was a soul proprietorship and switched to an S Corp. in February. He paid some of the taxes due such as Social Security. My job takes out the full amount of taxes as I claim single no exemptions.

I am very concerned about this at this point as I had actually been expecting a nominal refund not this amount. My understanding was that he had hired the same firm that is doing our taxes to calculate the amount of taxes that need to be paid throughout the year and had been making those payments.

Will I be liable for half of the $14,000? I understand that the money he earned benefited both parties but I feel that if he would've appropriately tax planned as he had said he had that we would not be in the situation that we are in right now. Please let me know if that is an incorrect thought process. I asked him via text today what his plan was for pain that and he at this point has not responded or refuses to respond. My gut is telling me that he is going to state that I need to pay half as it is a joint return.

Thank you!

Has the return actually been filed? If not, I would strongly recommend that you refuse to file a joint return with him and file your own separate return...because yes, you will be held responsible for those taxes by the IRS until they are paid...and you will be both be held responsible for the entire amount.
 

SilverRabbit

Junior Member
No I have not signed it. My first thought was to try to file separately. Is there anyway that he can force me to file joint with him?
 

Ohiogal

Queen Bee
The divorce court however can hold you liable for half the tax bill. Be aware of that. Filing separately does save you from the IRS coming after you, so to speak.
 

Astrolink

Member
I'm not a tax expert, but since divorce was just initiated in January of 2015, isn't any tax liability from the 2014 tax year most likely going to be marital debt, no matter how they file?

I'm using logic here. I realize sometimes that doesn't apply.
 

Ohiogal

Queen Bee
I'm not a tax expert, but since divorce was just initiated in January of 2015, isn't any tax liability from the 2014 tax year most likely going to be marital debt, no matter how they file?

I'm using logic here. I realize sometimes that doesn't apply.

Yes, it would be marital debt.
 

LdiJ

Senior Member
I'm not a tax expert, but since divorce was just initiated in January of 2015, isn't any tax liability from the 2014 tax year most likely going to be marital debt, no matter how they file?

I'm using logic here. I realize sometimes that doesn't apply.

It probably will be marital debt. However, settling it as marital debt as far as the divorce process goes is vastly different than being responsible to the IRS for it.

Example:

They file a joint return. He is responsible to pay the debt as far as the divorce is concerned and gets more of the disposable assets because he is responsible for that debt. Then, he doesn't pay it. She has a regular job and the IRS garnishes her wages for the debt, because as far as the IRS is concerned they are equally liable 100% for the debt.

Same scenario but they file separate returns. The IRS never bothers her at all...no matter what he does about the debt.
 

SilverRabbit

Junior Member
Thank you for all your responses! I'm more worried about the IRS then I am about the marital debt. Were still working that out at this time and I will most likely just reduce the amount of cash settlement that I will be getting.
 

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