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If you file as married, and your spouse has federal debt, there is the chance that the IRS will take your tax refund. However, if you file the injured spouse form the portion of the refund that is attributed to you will not be seized
So if your partner didn't work, then the refund is all yours and it won't be seized
This is true because you are not in a community property state. In a community property state they would take half.
If you don't file the injured spouse form, then the IRS could take your refund, it doesn't matter that the debt was incurred prior to your marriage
So it is critical to fill out that form.
Does the IRS seize spousal income to satisfy the other spouse's debts when the couple live in a separate property state, then?
No, they do not seize your income to satisfy the other spouse's debt.
And yet I still need to file that form? Why? Is it just in case?
I apologize, I mean your tax return, not your income.
I knew what you meant. You need the form so that they do NOT seize your refund
if you do not have that form, they will even if the debt happened prior to marriage
Even though we live in Oregon?
Yes, even though you live in Oregon
Because the IRS does not know what part of the refund is associated with each spouse unless you file that form
I would think they would know that the refund was associated only with me, since I am the only income earner, but if they want the form, that is ok with me.
Yes, you need the injured spouse form.
So because my spouse has no income, I should still receive all of my refund?
Yes, that is correct
If she starts working again, they will take her portion, yes?
Yes, that is correct. They will take her portion of the refund.
Ok. If that happens, we will have to decide if it would be better to file separately, I suppose.
No, you still have the injured spouse form. Just fill out her W-4 so she has the correct amount withheld to cover just her portion of the tax and then you won't have to worry about it because she won't have a refund
Ahh, thank you. Good advice.
Is there anything else that I can assist you with today?
No, I think that will do it. I appreciate your help.
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