Marriage is a beautiful relation that a person gets into. The difference between marriage and all the other relationships is that we choose our spouse. But that doesn’t turn out too great sometimes. Thankfully, we also have an option to get separated if things aren’t working so well. Filing for divorce is a painful decision and an equally painful process but also a necessary one where things aren’t working as planned. One major change that comes with marriage is the way we deal with taxes. Couples prefer to file joint tax returns after marriages mostly to save time and fees spent in separate filing and also to receive any tax benefits that may come with joint filing. However, joint filing means that the IRS is held liable for taxes owed to your spouse for a period before a divorce is finalized, which means you are still not rid of your spouse legally and financially.
Now, if you are equally involved in all financial decisions with your spouse before the divorce, there is no way you get rid of your half of the tax liability, but if you can prove that the tax liability is the result of your ex’s unresponsive behavior and financial recklessness, then you may be entitled to innocent spouse relief.
What Is Innocent Spouse Relief?
Innocent Spouse relief is basically a facility provided to you by the IRS in case if your spouse is failing to file or pay their taxes appropriately or in case hiding assets. Innocent spouse relief is there to help make your life easy by relieving you of tax obligation on the part of your ex’s bad decisions.
How to Avail Innocent Spouse Relief In Atlanta, GA?
The first step to avail innocent spouse relief is to fill out form 8857 and submit it to IRS within two years after the divorce is finalized. Getting a divorce doesn’t automatically stop the IRS from holding you liable for tax liability for the period of your marriage. Even if you are entitled to the tax refund, you need to request IRS separately for that. An innocent spouse should file for 8857 immediately after they come to know about a tax liability for which the ex-spouse or other spouse should be responsible solely. A spouse can qualify for this relief under the following conditions;
- You are separated or divorced
- Deductions or Income were not made by you but by your ex-spouse.
- You were deceived by your ex about finances, assets, or taxes.
- You were abused by your Ex.
- To determine that it is unfair to you that you are held responsible for your spouse’s wrongdoings.
To avail of this tax relief, taxpayers need to file form 8857 as soon as possible after the divorce is finalized or when they get to know about their spouse’s financial affairs, which they did not know about or don’t have to do anything with them.
The most important thing to keep in mind while applying for innocent spouse relief is to give proof to the IRS that you did not know anything about your spouse’s financial matters during the period for which you are applying for relief.
Secondly, to file your tax returns separately, you need to inform the IRS about your divorce right after the divorce is finalized. Form 8857 is the most important piece of this process, so you should be aware of everything about this.
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Zee Maq is a content writer who specializes in writing business and finance content. She has nine years of experience and loves to provide problem-solving content to help people tackle challenges in their everyday lives.