Can the IRS garnish my refund for a dependent's debt?

[texastaxquestion]

My spouse is not currently working and has no income so is my dependent. They have unpaid student loans, so would the IRS garnish my refund because of that? 

[bluedeb · Accepted solution]

Your spouse is not a dependent.  You spouse's debt will affect  your refund.  The IRS can take the refund for a past debt.

There are only four types of debt for which the federal government will withhold your tax refund or send it to one of your creditors. These debts include past-due federal taxes, state income taxes, child support payments and amounts you owe to other federal agencies, such as federal student loans you fail to pay.

[xmasbaby0]

No.  Your spouse cannot be claimed as a dependent.  Not ever.   If you are married you can file as married filing jointly or married filing separately.   

If your spouse has debts such as back taxes, child support or student loans, the IRS can seize your refund if you file a joint return.   You may be able to protect your part of the refund by filing as an injured spouse.

INJURED SPOUSE

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

If you are in a community property state it gets tricky.

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

Or...you can file married filing separately, but then you will lose child-related credits.

If you were legally married at the end of 2022 your filing choices are married filing jointly or married filing separately.

Married Filing Jointly is usually better, even if one spouse had little or no income. When you file a joint return, you and your spouse will get the married filing jointly standard deduction of $25,900 (+$1400 for each spouse 65 or older)  You are eligible for more credits including education credits, earned income credit, child and dependent care credit, and a larger income limit to receive the child tax credit. 

If you choose to file married filing separately, both spouses have to file the same way—either you both itemize or you both use standard deduction. Your tax rate will be higher than on a joint return. Some of the special rules for filing separately include: you cannot get earned income credit, education credits, adoption credits, or deductions for student loan interest. A higher percent of your Social Security benefits may be taxable. Your limit for SALT (state and local taxes and sales tax) will be only $5000 per spouse. In many cases you will not be able to take the child and dependent care credit. The amount you can contribute to a retirement account will be affected. If you live in a community property state, you will be required to provide additional information regarding your spouse’s income. ( Community property states:  AZ, CA, ID, LA, NV, NM, TX, WA, WI)

 If  you are using online TurboTax to prepare your returns, you will need to prepare two separate returns and pay twice.

https://ttlc.intuit.com/questions/1894449-married-filing-jointly-vs-married-filing-separately

https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states

https://ttlc.intuit.com/questions/1894449-is-it-better-for-a-married-couple-to-file-jointly-or-separ...

[bluedeb]

To add:  You file a joint return with your spouse, you cannot claim her as a dependent.  Enter her information in the Personal Info section.  You would just not enter income information for her.