1) Is there any way that we can keep our refund this year now that we are paying on the SBA loan monthly?
A: The simple means of avoiding having your refund taken is to change your W-4 employee withholding
or 1040-ES tax
statements so that you end up owing a small amount of money when your return is due. That way, there is no refund to seize.
At this point, if you or your spouse are making estimated tax payments
, then you would have one more due before your personal or business tax
return is due. So, you may want to consider not making that payment, and thereby reducing the amount of any refund by at least that amount.
Unfortunately, changing your W-4 (if you are an employee) at this point would do no good, because you have already paid all your taxes owed for the 2012 tax year.
The only thing you could do if what I'm suggesting does not work would be to ask the creditor to not seize the refund, and see if they will agree. 2) Can we file married filing separately and can I claim our son and other expenses or will they still take my refund also since we are married? Any help would be greatly appreciated.
A: This is a very complicated question. Unless you have a pare or postmarital agreement recognized as legal under Louisiana law
which provides that you and your spouse have decided to treat your income from all sources as separate, then your community income can be held liable for the debt of your spouse.
A premarital agreement is fairly straightforward to accomplish this goal. But, a postmarital agreement will almost certainly require an attorney to draft the document and ensure that it is in fact lawful in Louisiana -- because if you get it wrong, then your protection would be void. And, of course, the cost of having the agreement drafted may be more than the refund you would save -- so, it's probably not a realistic option.
Hope this helps.