My wife owes student loans will they take my refund

[theomorris33]

how do I make sure that I get my refund if I claim my wife

[DanielV01]

It depends.  The IRS can take all of the refund to satisfy the debt, but it is possible to get your portion of the refund.  I recommend the following:

•  First, you can call the following phone number to see if the refund will be taken (offset) to pay the debt:  800-304-3107 (it’s an automated system that asks you to input answers to several ID questions, then says if there is a debt the IRS can use the refund to pay).  If the answer is no, you will have nothing to worry about.  File Married Filing Joint as normal. 
• If the answer is yes, and you wish to get a portion of your refund, file Form 8379, entitled Injured Spouse Allocation.  See the following link for more details:  https://www.irs.gov/uac/form-8379-injured-spouse-allocation

You will still file Married Filing Joint to maximize your deductions and credits.  Although the idea of the form is that you get the portion of the refund based on your income and credits, only the IRS can determine what that amount (if any) will be.  A return with this form must be mailed in.

However, if you don't have children, have very similar income and will not claim other credits, you may decide to file Married Filing Separately.  The IRS will not take your refund if you file a separate return, and if you have this set of circumstances, you'd get about the same back filing joint or separately.  But if you have children or other credits, the first way is better.

[kcruz]

Last year my husband and I filed jointly and our entire tax refund was taken to pay off his school loan debt. This year my husband is a stay at home dad and has made zero income so I will be filing taxes on my own. Can the IRS still take my tax refund even though I am filing on my own and he didn't make any income?

[JamesG1]

The IRS can take your refund if you file married filing jointly.  Did you receive a notice that the IRS still has an offset against your spouse?

You can contact Department of Treasury’s Financial Management Service at 1-800-304-3107 to see whether there is an offset against your husband.

If you file married filing jointly, you can explore the Injured Spouse option.  Form 8379 lets the injured spouse get back your portion of a jointly-filed refund if it is seized or offset to pay your spouse’s debt.  See here.

[Darkceas]

So... i am basically in the same boat, but a little different. 

I make around 120k a year and my wife does not have a job and is a stay at home wife. 

She has 60k in student loan debt, and i have none. 

If we file jointly obviously i would recieve a tremendous refund back due to the fact i have my w2s as single 0s.  But would hate to have all the extra "savings"money go to uncle sam. 

My question is.... what is stopling me from changing my w2 to married 9, and offsetting the calculated refund to end up being 0, thus indirectly blocking the garnishment? 

[SweetieJean]

Well, the IRS could still attach your wages, bank account, etc.  The debt isn't going to go away, so why not see if you can negotiate the interest rate down?  And, if you are thinking about filing Married Separately, there are special issues if you are in a Community Property State.

[Hal_Al]

Q. My question is.... what is stopping me from changing my W-4, at work,  to reduce my refund to around 0, thus indirectly blocking the garnishment? 

A. Nothing. You're allowed to do that. 

[Darkceas]

They can attach to my wages as the sole earner on her debt? 

Sorry newly married and confused. 

[SweetieJean]

@Darkceas If you live in a community property state and your spouse borrows a student loan while you’re married, the debt is considered community debt.

[Darkceas]

Its 20 year old debt. Origional balance 25k now 60k. No payments ever. 

I just want it out of our life, but im saving for a house and im relying on that 15k for deposit. 

[SweetieJean]

Her debt will stay on her credit record.  This is an income tax forum, so seek legal assistance or see a financial planner.

[NCperson]

@Darkceas - please go back and read the original thread please.  there is something called the 'injured spouse' form (Form 8379) that was mentioned.  It will protect your refund in the situation you are describing.  it may get a little 'twisted' if you are in a community property state. 

https://www.irs.gov/pub/irs-pdf/f8379.pdf

[bentriviani]

will it definitely stay on the credit history?

[NCperson]

@bentriviani whose credit history? 

spouse - yes

yours - no 

[xmasbaby0]

@bentriviani 

"I just want it out of our life, but im saving for a house and im relying on that 15k for deposit. "

Your spouse has amassed a large debt, and it is not going away.   Seek financial counseling, as suggested above, or look into filing the injured spouse form to protect the part of your income tax refund that can be attributed to your own income.   Otherwise your refunds will be subject to seizure by the IRS if you file joint return with your spouse.

As mentioned above, "injured spouse" is much trickier if you live in a community property state.

Community property states:  AZ, CA, ID, LA, NV, NM, TX, WA, WI

INJURED SPOUSE

https://ttlc.intuit.com/questions/1910698-how-do-i-file-form-8379-injured-spouse-allocation

And just so you know---when you use the injured spouse form it takes the IRS considerably longer to process your tax return.