First, since we were married for part of 2017, will we file taxes as single/head of household (since we have 2 children together and each claim 1), or do we file as married filing separately?
Your filing status is based on the marital status as of 12/31/17 ... so if you are divorced by then you will not file jointly. You will file single or HOH if you have a qualifying child to claim.
Also, our marital settlement agreement says we are both responsible for our debt debt equally.
Last year our small refund was applied to our bill. I'm assuming the same will happen when we file our 2017 return. How will the IRS take form our returns?
Will they just split the bill between the both of us, or will one return be withheld?
Until the debt is paid they will take 100% of each of your refunds no matter what the settlement says.
Good luck in getting the other party to reconcile who owes what after the divorce.
May I highly suggest you make sure you don't have a refund so there is nothing to take.
