Should my mom file innocent spouse?

[lilsteve35194kid]

My dad is in jail, before he went he cashed his 401k, my mom has not filed for divorce yet and needs to file taxes, should she file innocent spouse so her refund doesn't get eaten up to pay his stuff?

[Lilly Peck]

Innocent Spouse Relief provides you relief from additional tax you owe if your spouse or former spouse failed to report income, reported income improperly or claimed improper deductions or credits.

Your father may have cashed in his 401K but in so doing he did nothing improper regarding his and your mother's tax returns. Your mother may consider filing a "married filing separate" return so to not have to include the 401K income but keep in mind, MFS taxes are calculated at a much higher rate.

[lilsteve35194kid]

Thank you! That makes sense.